Prime Highlights
- Solidcore Resources has agreed to form a joint venture with MDO to develop the Khabiyat copper-gold project in Oman.
- The company can raise its stake in the venture from 20 percent to as much as 60 percent in stages.
Key Facts
- Solidcore Resources is the second largest gold producer in Kazakhstan following the sale of its Russian business.
- A consortium led by Oman’s Mercury Investments International holds a 31.7 percent stake in Solidcore.
Background
Solidcore Resources, a leading gold producer in Kazakhstan, has announced an agreement with Minerals Development Oman (MDO) to establish a joint venture to explore and further develop the Khabiyat copper-gold project in Oman.
Under the deal, Solidcore will initially acquire a 20 % stake in the joint venture, with the option to raise this to as much as 60 % in stages. In the first stage, the company will invest $8 million in the venture’s capital to fund the geological exploration programme. Solidcore will pay $500,000 to MDO as an initial payment for the 20 % stake, followed by an additional $1.5 million upon completion of the first stage.
In the second stage, Solidcore will have the option to acquire a further 25 % stake, supported by an additional $20 million investment in geological exploration and preparation of a mineral resource estimate. In the third stage, the company will pay a further $1.5 million to MDO and will have the option to acquire an additional 15 % stake, taking its total participation to 60 %.
Solidcore CEO Vitaly Nesis said the partnership with MDO marked the company’s first exploration project outside Kazakhstan, forming part of its strategy to pursue disciplined growth and diversify its asset portfolio. He described the Khabiyat project as an important step in expanding the company’s regional presence, noting its potential to become the foundation for a future mining and processing hub in Oman.
Solidcore remains the second-largest gold producer in Kazakhstan following the sale of its Russian business. A consortium of Omani investors led by state-owned fund Mercury Investments International holds the company’s largest shareholding, at 31.7 %.
