Cygnus Metals backs $232M Central Asia Metals takeover

Cygnus Metals (ASX:CY5) has backed a $232 million takeover proposal from London-listed Central Asia Metals.

Under the agreed scheme of arrangement, Cygnus shareholders will receive 0.06 new CAML shares for each share held, valuing Cygnus at $0.176 per share.

This represents a 60% premium to Cygnus’ last closing price of $0.11 on June 1.

Upon implementation, CAML shareholders will own approximately 70% of the enlarged group, whilst Cygnus investors will retain a 30% stake, ensuring continued exposure to the flagship Chibougamau copper-gold project in Quebec, Canada.

The Cygnus board has unanimously recommended that shareholders vote in favour of the all-scrip transaction in the absence of a superior proposal and subject to an independent expert's review.

Major shareholders controlling roughly 29% of Cygnus have already flagged their support.

The merger will combine Cygnus' high-grade Canadian assets—boasting a measured and indicated resource of 6.4 million tonnes at 2.3% copper—with CAML’s cash-generative base metals portfolio in North Macedonia and Kazakhstan.

Cygnus Executive Chair David Southam labelled the deal a "true win-win outcome", highlighting CAML's technical experience and financial muscle, underscored by its US$56 million in free cash flow for financial year 2025.

CAML plans to advance further feasibility work at Chibougamau, aiming to develop the site using a historical 900,000-tonne-per-annum processing facility.

At the time of reporting, Cygnus Metals’ share price was $0.13.