LONDON (ShareCast) - (Sharecast News) - Central Asia Metals announced on Wednesday that it has completed the sale of its 76.1% stake in Copper Bay to Guardian Metals, exiting its interest in the Chilean copper tailings project.
The AIM-traded firm said the deal also triggered drag-along rights over the remaining 23.9% held by minority shareholders, giving Guardian Metals full ownership of the asset.

Copper Bay holds the mineral rights to a copper tailings project in Chile, which has now been entirely acquired by Guardian.

The company said the total consideration for the transaction was $7.5m in cash, payable in two equal deferred instalments.

It said the first $3.75m would be due once the Copper Bay assets reach cumulative production of 7,500 tonnes of copper, with the second payment tied to output reaching 15,000 tonnes.

CAML said it would receive its pro rata share of the total consideration based on its former majority holding.

Argent Partners acted as financial adviser to CAML on the transaction.

"We are delighted to have concluded this sale with Guardian Metals, which we believe offers the Copper Bay project a path to future development for the benefit of all stakeholders," said chief executive officer Gavin Ferrar.

"We previously wrote down the carrying value of CBL to zero, and this transaction thus offers the potential to realise additional value for CAML shareholders in the future."

At 1233 BST, shares in Central Asia Metals were down 2.94% at 145.4p.

Reporting by Josh White for Sharecast.com.

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