Nickel Asia Corporation (NAC) has taken another step toward completing its overseas mining expansion after approving a USD 30.3 million capital infusion into its Singapore subsidiary to finance the remaining payment for a planned 20% stake in Kazakhstan-based East Copper Production LLP, which controls the Karchiga copper mine.
The investment will be made in NAC Global Investments Pte. Ltd. (NAC Global), the company’s wholly owned Singapore subsidiary established to hold its international investments.
NAC said the total consideration for the East Copper acquisition amounts to USD 30 million, of which an initial USD 10 million payment has already been made. NAC Global will use part of the new capital to settle the remaining USD 20 million completion payment, subject to customary closing conditions, deliverables, and required regulatory approvals.
East Copper owns 100% of GRK MLD LLP, which holds the subsoil use rights for the Karchiga copper mine in Kazakhstan. NAC described the transaction as part of its push to broaden its natural resources portfolio across Asia beyond its core nickel business.
The NAC board also approved the transfer, or novation, of the parent company’s rights and obligations under the Membership Interest Sale and Purchase Agreement (SPA) to NAC Global.
Under the arrangement, NAC Global will replace Nickel Asia as the buyer of the East Copper stake, while the parent company will be released from its obligations under the acquisition agreement.
NAC Global will also repay the parent company an amount equivalent to the USD 10 million initial payment previously made to Silk Road Resources Ltd. for the transaction.
Placing the acquisition under NAC Global consolidates the transaction within the group’s vehicle for overseas investments and gives Nickel Asia exposure to copper as it seeks opportunities outside its domestic nickel operations.
Completion of the East Copper transaction remains subject to the conditions and regulatory approvals required under the SPA.
How will exposure to the Karchiga copper mine contribute to Nickel Asia’s strategy of expanding beyond its core nickel business and building a broader regional minerals portfolio?
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