The investment in Aberdeen represents a low-cost entry for CAML into a focused junior exploration company which is actively exploring the Arthrath Project in Aberdeenshire
Aberdeen Minerals is a privately owned UK company. (Credit: omid roshan on Unsplash)
Central Asia Metals plc (AIM: CAML) announces a conditional investment of £3 million in Aberdeen Minerals Limited (‘Aberdeen’) to acquire a 28.7% shareholding (the ‘Initial Investment’). The Initial Investment will be undertaken through a subscription for 35,294,117 new ordinary shares in Aberdeen at a price of 8.5 pence per ordinary share. In addition, CAML will receive warrants to invest an additional £2 million at a price of 11 pence per share, which would increase CAML’s ownership of Aberdeen to 37.8% assuming no further changes to Aberdeen’s issued share capital.
Louise Wrathall, CAML Executive Director of Corporate Development, commented: “As a focused junior explorer with its CEO and exploration team based in Northeast Scotland, Aberdeen is well placed to undertake exploration in an exciting area that is prospective for copper and nickel mineralisation. Importantly, we believe Aberdeen has built an impressive land package in Aberdeenshire and has a firm foundation of strong local relationships.
“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.”
Source: Company Press Release