Solidcore entering copper-gold project in Oman at initial exploration investment of $8 mln

MOSCOW. July 7 (Interfax) - Solidcore Resources goldminer has agreed to form a joint venture with Minerals Development Oman (MDO) to explore and further develop the promising Khabiyat copper-gold project in Oman.

Solidcore said that the company would initially acquire a 20% stake in the JV, though could increase the stake to 60% in stages.

During the first stage, Solidcore will invest $8 million in the JV's capital, which will be used to finance the geological exploration program. Solidcore will also pay $500,000 to MDO as an initial payment and an additional $1.5 million upon completion of the first stage. During the second stage, Solidcore will have the option to acquire an additional 25% stake in the JV. The company's investment in further geological exploration and the preparation of a mineral resource estimate will total $20 million. If Solidcore decides to proceed to the third stage, then it will pay an additional $1.5 million to MDO. During the third stage, Solidcore will have the option to acquire an additional 15% stake in the project, increasing its participation to 60%. The price of the stake will be determined based on the project's resource estimate.

"We are pleased to partner with MDO on this transaction, which will be our first exploration project outside Kazakhstan as part of Solidcore's strategy to pursue disciplined growth and diversify our asset portfolio. The Khabiyat project is an important starting point for expanding our presence in the region, and it has the potential to become the foundation for a future mining and processing hub in Oman," Solidcore CEO Vitaly Nesis said.

Solidcore remains the second largest gold producer in Kazakhstan following the sale of its Russian business. A consortium of Omani investors led by Omani state-owned fund Mercury Investments International is the largest shareholder with a 31.7% stake.