London-based Central Asia Metals (CAML) has agreed to acquire Cygnus Metals in an all-share deal valued at approximately £123m, adding the Chibougamau copper-gold project in Québec to its portfolio and significantly expanding its exposure to copper and North America.

The acquisition provides CAML with a high-grade development-stage copper-gold asset in a tier-one mining jurisdiction, complementing its existing operations in Kazakhstan and North Macedonia.

The Chibougamau project contains substantial copper, gold and silver resources and includes an existing processing plant that could help reduce future development costs.

CAML said the deal would strengthen its growth pipeline, diversify its geographic footprint and increase exposure to copper, a commodity expected to benefit from long-term electrification trends. The company also believes its strong balance sheet and cash-generating operations provide a clear route to funding and advancing the project.

Under the terms of the deal, Cygnus shareholders will receive 0.06 new CAML shares for each Cygnus share held, giving them around 30% ownership of the enlarged group. Existing CAML shareholders are expected to retain approximately 70%.

The transaction offers Cygnus shareholders a 60% premium to the company's closing share price on 1 June and allows them to retain exposure to the future development of the Chibougamau project through ownership in the enlarged CAML group.

The deal has been unanimously recommended by the boards of both companies and has already secured support from major Cygnus shareholders representing around 29% of shares on issue. Cygnus shareholders are expected to vote on the proposal in September 2026, with completion anticipated shortly afterwards.

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