Nickel Asia Corporation (NAC) has acquired a 20% membership interest in a Kazakhstan-based copper project, marking its first move to diversify beyond its core nickel business.
In a disclosure dated April 22, the company said it entered into a Membership Interest Sale and Purchase Agreement with Silk Road Resources Ltd. for the acquisition of a stake in East Copper Production LLP.
The investment gives NAC exposure to the Karchiga copper mine in Kazakhstan, a deposit located within the Central Asian Orogenic Belt, which is a region known for its mineralization potential.
The company clarified that the transaction involves the purchase of a membership interest and not shares, with the consideration to be paid in cash.
“There are no shares or stock involved in the acquisition,” the company stressed.
East Copper Production LLP holds participation in GRK MLD LLP, which owns the subsoil use rights to the Karchiga copper project.
The mine has an annual production capacity of 8,500 tons of copper sulfide concentrate at an average grade of 1.8%, along with 2,000 tons of copper cathode at an average grade of 1.0%.
NAC said the investment forms part of its strategy to expand its market capitalization and earnings by evolving beyond nickel into a diversified natural resources development platform with a growing presence across Asia.
The transaction remains subject to the completion of due diligence, the satisfaction of closing conditions, and the necessary regulatory approvals.
How significant is Nickel Asia’s move into copper for its long-term growth strategy?
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