LONDON (ShareCast) - Central Asia Metals has increased its stake in Copper Bay in Chile from 50% to 75%, after paying $3m.
The miner's investment follows the completion of an internal pre-feasibility study on the Chañaral Bay copper tailings project in Chile.

Furthermore, the raised money will be used to conduct a definitive feasibility study on the project.

Chief executive Nick Clarke said: "This investment represents CAML's first step towards generating a robust project pipeline which gives the company the opportunity to grow and to build upon our success at Kounrad.

"Moreover, this investment reinforces our presence in an attractive copper mining district where we will continue to focus on business development opportunities."

The company added dredged material will be fed to the plant and is expected to result in annual copper production of 8,600 tonnes.

Sp Angel analysts said: "The company look as if they are trying to replicate their success with Kounrad at Copper Bay.

"We wonder what the environmental implications will be even though Copper Bay itself claim that by processing the tailings they will be clearing up the dumps left behind by previous operators."

Shares were down 0.95% to 183.74p on Wednesday at 13:49.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE