ALMATY, May 20 (Reuters) - London-listed Central Asia MetalsPlc (CAML) has acquired the remaining 40 percent of theKounrad copper project in Kazakhstan and aims to boost coppercathode output by about 50 percent by 2016, it said on Tuesday.
CAML is now the sole owner of the Kounrad project in centralKazakhstan where it processes mining waste piled up duringSoviet-era operations.
"The Company plans to increase copper production at Kounradfrom the existing 10,000 tonnes to 15,000 tonnes per annum by2016 at an estimated cost of $35 million, phased over the nextthree years," CAML said in a statement. Kounrad is estimated tocontain more than 600,000 tonnes of copper, CAML said.
It said capital expenditure would be financed from currentproject cash flows and is was not expected to have any impactupon CAML's dividend policy.
CAML has bought the 40 percent stake in Kounrad fromprominent Kazakh businessman Kenges Rakishev. He will receive21.2 million new ordinary shares of $0.01 representing 20percent of CAML's issued ordinary share capital.
Rakishev will also receive 4 pence per share in lieu of theinterim dividend declared by CAML in September 2013, whichamounts to a cash payment of 848,470 pounds ($1.43 million), thecompany said. ($1 = 0.5943 British Pounds) (Reporting by Dmitry Solovyov. Editing by Jane Merriman)
Central Asia Metals (CAML)