NICKEL ASIA CORP. is acquiring a 20% stake in a Kazakhstan-based copper enterprise as a part of its technique to diversify beyond nickel and expand its regional footprint.
In a disclosure on Wednesday, the listed miner said it signed a membership interest sale and buy agreement with Silk Road Resources Ltd. and East Copper Production LLP to amass a minority stake in East Copper.
East Copper is the only real owner of GRK MLD LLP, which holds subsoil use rights for the Karchiga copper mine in Kazakhstan. The deposit is positioned inside the Central Asian Orogenic Belt, a highly mineralized region known for significant copper resources.
The transaction stays subject to due diligence on East Copper and GRK, in addition to regulatory approvals and other closing conditions.
Nickel Asia said GRK has an annual production capability of 8,500 tons of copper sulfide concentrate with a median grade of 1.8%, and a pair of,000 tons of copper cathode with a median grade of 1%.
The investment marks a step in the corporate’s broader push to diversify its natural resource portfolio and reduce reliance on nickel.
It also aligns with its goal of expanding market capitalization and constructing a stronger presence across Asia.
“This investment supports the corporate’s technique to expand market capitalization and earnings by evolving beyond nickel right into a diversified natural resource development platform,” Nickel Asia said. — V.A.E. Villamiel