The company also said that during 2019 the Group will progress a bankable feasibility study of the project.
KAZ Minerals (LSE:KAZ) has announced that following regulatory approval and completion of other conditions precedent under the agreement to acquire the Baimskaya copper project, as announced by the Group on 2 August 2018, initial completion of the transaction has now occurred.
KAZ said the consideration due on initial completion is $436 million in cash and the issuance of initial equity consideration comprising 22,344,944 new KAZ Minerals shares. The shares comprising the initial equity consideration have been allotted and issued to the vendor and are identical in all respects to KAZ Minerals existing issued shares. The initial equity consideration is expected to be admitted to listing on the official list and to trading on the main market of the London Stock Exchange on 24 January 2019 and is subject to a three-year lock-up period ending on the third anniversary of initial completion.
As quoted in the press release:
During 2019 the Group will progress a bankable feasibility study of the project. The results of the feasibility study, including guidance on the timing of capital expenditure, production volumes, operating costs and sustaining capital expenditure are expected to be announced in the first half of 2020. In parallel with the feasibility study, the group will continue discussions with banks on financing the construction phase and evaluate the potential for partnering. State funded infrastructure projects to deliver power to the Baimskaya site are progressing in line with expectations. The construction of the 110 kV power line from Bilibino is on schedule to be completed by the end of 2019 and will provide sufficient power for the construction phase of the project. An existing TASED zone in the Chukotka region has been enlarged to cover the area in which the Baimskaya licence area is located. The group will proceed with a formal application for TASED status in due course.