Central Asia Metals (CAML) has announced a conditional investment of £3m ($3.7m) in Aberdeen Minerals to pick a 28.7% interest in the company.

Initial investment will be made through the subscription for 35,294,117 new ordinary shares in Aberdeen at 8.5p each.

Additionally, CAML has secured warrants for a further investment of £2m at 11p per share, potentially increasing its stake in Aberdeen to 37.8%, assuming no other changes in Aberdeen’s share capital.

The move is aimed at expanding the company’s footprint in the base metals sector, essential for green energy transition.

Aberdeen Minerals is actively exploring the Arthrath Project in Aberdeenshire, north-east Scotland, and other areas in the region.

The company has reported promising copper-nickel-cobalt mineralisation, with encouraging drilling and geophysics results supporting a strong exploration model for high-grade base metal sulphides.

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The latest investment represents a low-cost entry into a focused junior exploration company with significant potential, and aligns with CAML’s portfolio, enhancing its exposure to the base metals market.

The funding from CAML will enable nearly 10,000m of drilling in two phases at Arthrath, with the aim of confirming the continuity of high-grade mineralised intersections.

Success in drilling could lead to the preparation of a mineral resource estimate (MRE) and scoping level financial studies.

Moreover, the investment will support Aberdeen’s metallurgical test work, which is part of the UK Automotive Transformation Fund.

The fund is designed to foster the development of a high-value, electrified automotive supply chain in the UK.

CAML corporate development executive director Louise Wrathall said: “As a focused junior explorer with its CEO and exploration team based in north-east Scotland, Aberdeen is well placed to undertake exploration in an exciting area that is prospective for copper and nickel mineralisation.

“Importantly, we believe Aberdeen has built an impressive land package in Aberdeenshire and has a firm foundation of strong local relationships.

“We have been impressed with the Aberdeen team and its approach to exploration, and we look forward to working together to discover the extent of the base metal potential in this area of Scotland.”