London-listed Central Asia Metals has agreed to acquire Canadian explorer Cygnus Metals for approximately A$232 million ($166 million) in an all-share deal, adding the Chibougamau copper-gold project in Quebec to a portfolio that already includes producing operations in Kazakhstan and North Macedonia.
Under the terms of the agreement, CAML will issue 0.06 new shares for each Cygnus share, valuing each Cygnus share at A$0.176 — a 60% premium to the last closing price and a 40% premium to the 20-day volume-weighted average. Following completion, existing CAML shareholders will retain approximately 70% of the combined company, with Cygnus shareholders holding the remaining 30%. A Cygnus shareholder vote requiring 75% approval is expected in September, and CAML will hold its own shareholder meeting to approve the share issuance. CAML also intends to seek a listing on the Toronto Stock Exchange or TSX Venture Exchange to broaden its North American investor base.
Chibougamau, located in central Quebec approximately 480 kilometres from Montreal and acquired by Cygnus in 2024, hosts indicated resources of approximately 149,000 tonnes of copper and 167,000 ounces of gold, alongside inferred resources of 182,000 tonnes of copper and 454,000 ounces of gold, based on a 2022 preliminary economic assessment by previous owner Doré Copper Mining. The site includes existing infrastructure and a historic copper processing plant with 900,000 tonne per year capacity. CAML plans to advance a full feasibility study using its own underground mining expertise.
CAML’s existing operations — the Sasa zinc-lead underground mine in North Macedonia and the Kounrad copper heap leach operation in central Kazakhstan — are expected to produce 12,000 to 13,000 tonnes of copper cathode, 18,000 to 20,000 tonnes of zinc concentrate and 26,000 to 28,000 tonnes of lead concentrate in 2026. The Chibougamau acquisition follows CAML’s unsuccessful attempt last year to acquire Australia’s New World Resources and its Arizona copper project.
Non-executive chairman Nick Clarke described Chibougamau as a high-quality copper-gold asset that fits well alongside CAML’s existing operations and provides a clear path to near-term growth. Cygnus also holds lithium exploration assets in Quebec’s world-class James Bay region and rare earth and base metal projects in Western Australia.
