Caerus Mineral Resources plc has signed an exclusive option agreement to acquire EV Metals Group plc (EVM)’s 90%-owned metals and minerals subsidiary in Saudi Arabia.
RIWAQ
RIWAQ Al Mawarid for Mining is EVM’s special purpose vehicle focused on exploration, mining and processing of minerals and metals in Saudi Arabia.
The subsidiary is developing a portfolio comprising applications and granted exploration licences with potential for nickel, cobalt, copper, platinum group metals and rare earth elements.
EVM has been operating in Saudi Arabia since 2018 and has offices in Jeddah and Al Khobar.
Caerus said that the deal reflected its evolved strategy to invest in larger scale opportunities aligned with, and gained through, its EVM partnership.
The potential acquisition was also part of the company’s evolution from a single project to becoming part of the European critical minerals supply chain.
Caerus will pay a refundable $500,000 deposit to conduct an extendable three-month due diligence.
The company added it considered Saudi Arabia to be “one of the best new frontiers for exploration of transition metals” and RIWAQ’s portfolio to be “one of significant and strategic value”.
Caerus said RIWAQ’s portfolio comprises 11 granted exploration licences and 142 licence applications under process.
The granted licences cover 1,093 km2 in the area of Balthaga, prospective for lithium pegmatites.
Remaining applications covering 11,350km2 are prospective for nickel, cobalt, copper and platinum group metals hosted in sulphide, volcanic hosted massive sulphide, and porphyry type deposits.
The company added that there were also several applications for rare earth element granite systems.
“We are delighted to announce this agreement,” added chairman Chris Lambert.
“Whilst Caerus is set to undertake a comprehensive review of the licences, we believe they hold considerable value for the energy revolution and the opportunity for long-term development.
“With Vision 2030, Saudi Arabia has made clear its intentions regarding the development of its mining sector – namely it is a vital industry pillar for development.”
Caerus said that Saudi Arabia was largely undeveloped as an acknowledged resource-rich region with mining potential.
“This is expected to change due to new mining investment laws, a streamlined licence application process and much improved data sharing.
“Important changes include up to 100% foreign ownership, 20% corporation tax, attractive loans for industrial projects from the Saudi Industrial Development Fund, and no restrictions on the repatriation of capital.”
RELATED PARTIES
EVM holds approximately 16.34% of the voting rights of Caerus.
Russell Thomson is a statutory director of EVM and Dominic Traynor is corporate secretary to EVM.
Mr Thomson and Mr Traynor were not part of the quorum nor did they vote on the proposal to approve the terms of the MOU.
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