Central Asia Metals plc plans to expand into Canada by acquiring Quebec-focused copper-gold-silver developer Cygnus Metals Ltd, in an A$232 million (£123m) all share purchase.
MRE
The transaction adds the Chibougamau project to Central Asia’s Kazakhstan copper and North Macedonia zinc-lead production and its investment in Aberdeen Minerals Ltd’s base metals exploration project in Scotland.
The Australian scheme of arrangement is for 0.06 new Central Asia share per Cygnus share.
On completion, Central Asia shareholders will own approximately 70% and Cygnus shareholders will hold 30%, of Central Asia’s enlarged fully diluted issued share capital.
The company said that the transaction, under a definitive scheme implementation deed, combined “cash-generative assets and long-term exploration potential with a near-term development growth pipeline”.
The company added that a late 2025 mineral resource estimate showed 6.4 million tonnes at a 2.3% copper grade, 0.8 grammes per tonne gold grade and 7.6g/t silver grade in the measured and indicated categories.
“The presence of an historical 900,000 tonnes per annum processing plant on site is expected to provide a significant head start and lower capital requirements for the project once refurbished,” said Central Asia.
The project additionally holds 8.5Mt at a 2.1% copper grade, 1.7g/t gold grade and 7.9g/t silver grade in the inferred category.
Cygnus shareholders are expected to vote on the scheme in September 2026, and Central Asia will seek shareholder authority to issue shares.
Under the terms of the scheme, Central Asia will apply to list its ordinary on the Toronto Stock Exchange or TSX Venture Exchange.
The company’s shares, which are on the AIM market of the London Stock Exchange and included in the FTSE AIM UK 50 and 100 indices, will remain listed in the UK.
Central Asia added that Canada’s Critical Minerals Infrastructure Fund has approved co-funding for feasibility studies on transport and power infrastructure.
“The addition of this high‑grade copper‑gold project in a tier‑one jurisdiction represents a material step to strengthening our portfolio,” said chief executive officer Gavin Ferrar.
“We have been impressed by the quality and experience of the Cygnus team and look forward to working closely with them to integrate the Chibougamau project, complete an updated PEA [preliminary economic assessment] and advance the asset towards a feasibility study.
“We also look forward to working in collaboration with our host communities and other key stakeholders, including the Oujé-Bougoumou Cree Nation, the City of Chibougamau and the Government of Québec .”