Central Asia Metals plc, focused on North Macedonia and Kazakhstan, has conditionally invested an initial £3 million for a 28.7% stake in explorer Aberdeen Minerals Ltd.
DRILLING
With a footprint of 7,400ha (75km2) agreed with landowners, Aberdeen is exploring for nickel, copper and cobalt at the Arthrath project in Aberdeenshire, northeast Scotland.
The company states that the area contains “the largest nickel deposit in the UK” and is additionally targeting “several promising targets in the underexplored surrounding district”
CAML’s initial investment will be via a subscription for 35,294,117 new ordinary shares in Aberdeen at a price of 8.5 pence per ordinary share.
The company will also receive warrants for an additional £2m to subscribe for 18,181,818 ordinary shares at a price of 11 pence per share, increasing its ownership in Aberdeen to 37.8%.
The warrants exercise immediately and expire on receipt of certain technical results.
At year ending 31 December 2023, the group held $57.2m cash (2022: $60.6m).
CAML said its investment in Aberdeen complemented its own portfolio by increasing exposure to the base metals market.
The overall investment will fund 10,000 metres drilling in two phases to determine continuity of “high-grade mineralised intersections already identified at depth”.
If the results are successful, a mineral resource estimate and scoping level financial studies will begin.
As part of the investment agreement, CAML has nominated a director to the board of Aberdeen.
The company’s executive director of corporate development Louise Wrathall will join the board on completion of the initial £3m.
“We believe Aberdeen has built an impressive land package in Aberdeenshire and has a firm foundation of strong local relationships,” said Ms Wrathall.
“We have been impressed with the Aberdeen team and its approach to exploration, and we look forward to working together to discover the extent of the base metal potential in this area of Scotland .
“Our wider business development activities continue as we maintain our work appraising other accretive and potentially transformational opportunities that can contribute to CAML’s long-term growth.”
Completion of the investment is subject to regulatory and shareholder approval.
ABERDEEN MINERALS
Incorporated in Scotland in 2018, Aberdeen is located in Ellon and currently has some 80 international and UK shareholders.
In February 2023, the company changed its name from Strategic Minerals Europe Ltd.
In October of the same year Aberdeen received a £294,000 grant from the UK Government’s Automotive Transformation Fund, which has also awarded money to Cornish Lithium plc and British Lithium plc.
Aberdeen has also sought grants from the Scottish Government’s Just Transition Fund.
The board comprises co-founders director and chairman Patrick Murphy and director Thomas Todd, as well as managing director and chief executive Fraser Gardiner and independent non-executive director Roy Buchan.