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(Sharecast News) - Exploration and production firm Caspian Sunrise has moved into nonoil and gas minerals for the first time after agreeing to acquire TauCen for $700,000.
Caspian Sunrise will pay $350,000 in cash and $350,000 in new shares, with 5.22m shares to be issued at 5p each.
TauCen, located in Kazakhstan, holds exploration licences running to 2031 across 235.8 square kilometres, with potential resources including titanium, zirconium, gold and rare earth elements. TauCen recorded a loss of roughly £9,000 for the last 12 months.
Caspian Sunrise also noted that the deal would marginally lift the Oraziman Family Concert Party's stake to 50.63% of the enlarged share capital of 2.46bn shares.
Chairman Clive Carver said: "Tau-Cen is the group's first move into the commercially attractive minerals sector.
"The acquisition provides the group with strong potential upside with each of the titanium, zirconium and gold targets for minimal cost. The rare earth potential is further plus"
As of 1015 GMT, Caspian Sunrise shares were up 1.09% at 2.78p.
Reporting by Iain Gilbert at Sharecast.com
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