Cove Kaz Capital Group LLC, a U.S.-based company focused on developing tungsten and other critical mineral resources in Kazakhstan, has announced the mutual termination of its business combination agreement with Skyline Builders Group Holding Limited. This decision, made on 30 April 2026, comes as both companies seek to realign their strategic objectives. Following the termination, Skyline will change its ticker symbol, releasing the ‘KAZR’ symbol within the next fifteen days.
In a significant development, Cove Kaz has secured a new equity funding commitment of $32 million from American Ventures, LLC. This investment, priced at $8.00 per share, values the company at approximately $1.97 billion, reflecting a 76% increase in valuation compared to the previous agreement with Skyline. Cove Kaz’s Executive Chairman, Pini Althaus, expressed confidence in the company’s progress towards developing its tungsten project, highlighting the growing global demand for tungsten, particularly in defence, technology, and advanced manufacturing sectors.
The tungsten market has seen prices soar due to increased demand and supply constraints, particularly following Chinese export controls. The price of ammonium paratungstate (APT) has reached record highs, with current prices in Rotterdam around $280,000 per metric tonne, a stark contrast to previous years. Althaus noted that the Northern Katpar and Upper Kairakty projects, which are among the largest undeveloped tungsten resources globally, are poised for development, with an anticipated mine life exceeding fifty years.
Cove Kaz is also planning to convert to a Delaware corporation and combine with certain assets affiliated with Cove Capital LLC in Kazakhstan, pending regulatory approvals. This strategic move aims to enhance the company’s operational framework and align with Kazakhstan’s regulatory standards for responsible mining practices. The project is expected to contribute significantly to Kazakhstan’s economic development, creating jobs, upgrading infrastructure, and integrating the country into global critical minerals value chains.
As the company progresses through feasibility and permitting stages, it aims to establish a secure supply of tungsten for both the U.S. and global markets, addressing the critical need for this essential mineral in various high-tech applications. Cove Kaz’s commitment to responsible mining and environmental standards underscores its dedication to sustainable development in the region.
