The directors of ASX- and TSX-V-listed Cygnus Metals have recommended that shareholders vote in favour of a scheme of arrangement whereby Aim-listed base metals miner Central Asia Metals intends to acquire 100% of Cygnus' share capital.

Cygnus has submitted a draft scheme booklet, containing the draft independent expert's report, to the Australian Securities and Investments Commission for its review, which is a key milestone for the scheme to realise.

The commission's review of the draft scheme booklet will be followed by an initial court hearing on or about August 13 to make orders convening a Cygnus shareholder meeting to consider the scheme.

The scheme booklet will be released publicly shortly after August 13, with a scheme meeting envisioned to take place in mid-September. For the scheme to proceed, at least 75% of Cygnus shareholders must vote in favour of the deal.

Central Asia and Cygnus entered into a definitive scheme implementation deed in June, which outlines how each Cygnus shareholder will receive 0.06 new Central Asia shares of each Cygnus share held. This implies an equity value of A$232-million for the takeover, valuing each Cygnus share at A$0.176 apiece.

The deal is expected to result in existing Central Asia shareholders owning about 70% of Cygnus' enlarged fully diluted issued share capital and Cygnus shareholders the balance.

Central Asia currently has production assets in North Macedonia and Kazakhstan, but will soon add Cygnus' development-stage Chibougamau copper/gold project, in Québec, to its portfolio. Central Asia plans to undertake an updated preliminary economic assessment on the project and advance it towards a feasibility study.

Central Asia intends to list on the TSX or TSX-V prior to implementation of the Cygnus scheme to broaden its investor base in North America while retaining its listing in London.

For Cygnus, the deal provides exposure to Central Asia’s robust and sustainable cash flow, with Central Asia having reported free cash flow of $56-million in the 2025 financial year, with improvements anticipated in the 2026 financial year.

Central Asia returned $28-million to shareholders in the 2025 financial year.

Cygnus shareholders will be exposed to increased liquidity and benefit from Central Asia’s proven project development and operational expertise in base metals, underground mining, processing and dry stack tailings.