UK-based Amedeo Resources has announced that it has acquired a 2.5-percent stake in Ganjine Kani Company (GKC) for US$500,000, a copper mining company close to the city of Mashhad in Iran. As part of the transaction, Amedeo has a 5-year option to acquire a further 5% of GKC for US$2 million.
GKC is a producing miner. GKC also has the required infrastructure to produce copper concentrate from ore. To date, around 1 million tonnes of ore has been extracted by GKC which contains, on average, 0.9% copper. GKC has three mines.
Iranian studies estimate that the producing mine alone may have at least 6.5 million tonnes of copper ore with a 0.9% average copper content. The extent of the ore and its copper content has yet to be confirmed to international standards.
GKC has been selling copper concentrate into Asia, including China. MGR Resources PTE Ltd (“MGR”), which trades and brokers iron ore and in which Amedeo has a 49% stake, intends to work with GKC to increase GKC’s supply of copper into East Asia and China.
Glen Lau, Chief Executive Officer of Amedeo said:
“We are pleased to have made this acquisition which will allow MGR to widen the commodities it trades and brokers and, at the same time, give MGR a captive supply of copper.”