Central Asia Metals proposes to buy Cygnus Metals and list in Toronto

Tue, 02nd Jun 2026 10:58

(Alliance News) - Central Asia Metals PLC on Tuesday said it has proposed to buy Cygnus Metals Ltd for AUD232 million, about USD166.5 million.

The Kazakhstan and North Macedonia-focused mining company has offered 0.06 of a new share in Central Asia Metals for each Cygnus share. The offer values each Cygnus share at AUD0.176 based on Central Asia Metals's closing share price of 156 pence each on Monday, implying an equity value for Cygnus of about AUD232 million.

This reflects a premium of about 60% to Cygnus's closing share price of AUD0.110 on Monday.

Cygnus is a Perth, Australia-based mining firm which targets copper and gold at its flagship Chibougamau project in Canada.

It has entered a definitive scheme implementation deed with Central Asia Metals, which sees Chibougamau as a valuable addition to its portfolio "in a high-quality jurisdiction".

The latest mineral resource estimate for the site is a measured and indicated resource of 6.4 million tonnes graded at 2.3% copper, 0.8 grammes per tonne of gold and 7.6 g/t of silver, and an inferred resource of 8.5 million tonnes graded at 2.1% copper, 1.7 g/t of gold and 7.9g/t of silver.

Alongside operational capabilities, Central Asia Metals said it can provide "a clear funding pathway" for the project.

Major Cygnus shareholders with a combined stake of about 29% have committed to vote in favour of the acquisition at a meeting scheduled for September. A minimum of 75% approval is required for the transaction to proceed.

After the deal closes, Central Asia Metals expects to own 70% of Cygnus, with existing Cygnus investors holding the remaining 30%.

Before Cygnus holds its scheme meeting, Central Asia Metals will convene its own meeting to approve the allotment of new shares and share options to cover the Cygnus consideration.

In parallel, Central Asia Metals has committed "to use all reasonable endeavours to apply for approval for listing" its shares in Toronto, either on the Toronto Stock Exchange or TSX Venture Exchange, broadening its North American investor base. This will not affect its AIM listing in London, the firm noted.

Shares in Central Asia Metals were flat at 156.00 pence on Tuesday morning in London. The stock also is listed in New York on the OTC Market, where it last traded at USD2.24, and in Frankfurt, where it was down 7.9% to EUR1.76 near midday.

Central Asia Metals Chief Executive Gavin Ferrar commented: "The addition of this high‑grade copper‑gold project in a tier‑one jurisdiction represents a material step to strengthening our portfolio. We have been impressed by the quality and experience of the Cygnus team and look forward to working closely with them."

He added: "We also look forward to working in collaboration with our host communities and other key stakeholders, including the Ouje-Bougoumou Cree Nation, the city of Chibougamau and the government of Quebec."

By Holly Munks, Alliance News reporter

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