ALMATY May 20 London-listed Central Asia Metals
Plc (CAML) has acquired the remaining 40 percent of the
Kounrad copper project in Kazakhstan and aims to boost copper
cathode output by about 50 percent by 2016, it said on Tuesday.
CAML is now the sole owner of the Kounrad project in central
Kazakhstan where it processes mining waste piled up during
"The Company plans to increase copper production at Kounrad
from the existing 10,000 tonnes to 15,000 tonnes per annum by
2016 at an estimated cost of $35 million, phased over the next
three years," CAML said in a statement. Kounrad is estimated to
contain more than 600,000 tonnes of copper, CAML said.
It said capital expenditure would be financed from current
project cash flows and is was not expected to have any impact
upon CAML's dividend policy.
CAML has bought the 40 percent stake in Kounrad from
prominent Kazakh businessman Kenges Rakishev. He will receive
21.2 million new ordinary shares of $0.01 representing 20
percent of CAML's issued ordinary share capital.
Rakishev will also receive 4 pence per share in lieu of the
interim dividend declared by CAML in September 2013, which
amounts to a cash payment of 848,470 pounds ($1.43 million), the
($1 = 0.5943 British Pounds)
(Reporting by Dmitry Solovyov. Editing by Jane Merriman)