Solidcore acquiring controlling interest in Syrymbet tin-polymetallic project in Kazakhstan for $82.5 mln

MOSCOW. Oct 31 (Interfax) - Gold miner Solidcore Resources plc (former Polymetal) has entered into an agreement with Berkut Mining LLP, a subsidiary of Lancaster Group, to acquire stake in Syrymbet, a large undeveloped tin deposit located in the North Kazakhstan region, Solidcore said in a press release.

Solidcore said it was buying 55% of Tin One Holding, which indirectly holds the subsoil license for Syrymbet, for a total cash consideration of $82.5 million. The transaction will be financed from the company's existing cash resources and is expected to complete in Q4 2024, subject to regulatory approvals.

"Syrymbet is a polymetallic deposit with tin as a major component, which perfectly fits our strategy of enhancing and diversifying Solidcore's exposure to the green transition," said Vitaly Nesis, Group CEO of Solidcore Resources plc. "Together with the partner [Berkut Mining], we are committed to driving the project forward while ensuring sustainable practices. We are aiming for board approval for construction in 2025," Nesis said.

The Syrymbet license covers more than 10 square km. The JORC-compliant Mineral Resource estimate is 492.4 Kt of tin at a grade of 0.40% and 91.4 Kt of copper at a grade of 0.07% (5.9 Moz of GE).

In 2024, Solidcore completed 3 km of drilling, aimed at validating historical exploration results and conducting metallurgical studies. The deposit is suitable for open-pit mining. Solidcore will refine the existing approach to processing to accelerate path to production, optimize capital expenditures and reduce the project's environmental footprint.

The company remains the second largest gold producer in Kazakhstan following the sale of the Russian business. The principal shareholder is a consortium of Omani investors led by the Omani government-owned fund Mercury Investments International with 29.7%.