Central Asia Metals (AIM:CAML) has agreed to acquire 100% of Cygnus Metals for an equity value of AUS$232 million, giving the London-listed company Chibougamau, a copper-gold project in Quebec.
The transaction sets a price of A$0.176 per Cygnus share, and will see the current CAML shareholder base holding about 70% of the enlarged company.
It will own 100% of Chibougamau Project, where the latest MRE reports 6.4Mt at 2.3% Cu, 0.8g/t Au and 7.6g/t in Measured and Indicated categories and 8.5Mt at 2.1% Cu, 1.7g/t Au and 7.9g/t in Inferred resources, equating to 149,000 tonnes of contained copper and 167,000 ounces of gold.
CAML says the deal enhances scale, commodity and geographic diversification. It also levers the firm's FY2025 free cash flow of US$56 million, it said, adding that the asset complements CAML's 2026 production guidance for its existing operations.
"We see this transaction as a compelling opportunity for CAML to add a high‑grade copper‑gold asset that fits well alongside our existing operations," said Nick Clarke, Non‑Executive Chairman of Central Asia Metals.
