Getech, a world-leading locator of subsurface resources, is pleased to announce it has entered into a joint venture agreement with East Star Resources plc ("East Star"), a London listed Kazakhstan focused copper exploration company, to pursue copper exploration in Kazakhstan. The joint venture will be conducted through a subsidiary established specifically for this purpose (the "JV Company").
LONDON, March 13, 2024 /PRNewswire-PRWeb/ -- Getech, a world-leading locator of subsurface resources, is pleased to announce it has entered into a joint venture agreement with East Star Resources plc ("East Star"), a London listed Kazakhstan focused copper exploration company, to pursue copper exploration in Kazakhstan. The joint venture will be conducted through a subsidiary established specifically for this purpose (the "JV Company").
Utilising its proprietary data, enhanced by in-house Artificial Intelligence (AI) capabilities, Getech will conduct a mineral systems analysis and structural interpretation for sedimentary-hosted copper to pinpoint prospective areas in mineral rich, yet underexplored basins in Kazakhstan. East Star will lead the application process for the tenements / licenses and spearhead operational activities.
In return for its services, Getech will have a call option to obtain shares at nil cost in the JV Company, equivalent to 5% of its issued capital, once exploration licenses are secured within the project areas. Getech's 5% share is protected against dilution until a decision to mine has been made at one or more of the mining licenses.
The transaction is the first example of Getech implementing its equity participation strategy. The new agreement demonstrates a change from generating fee income from subsurface searches to asset participation with the potential to generate substantially more value from its unique data.
Copper is crucial for the energy transition as it is a key component in renewable energy systems, including wind turbines, solar panels and electric vehicles. Its superior conductivity and durability make it indispensable in efficiently transmitting and storing renewable energy. The forecasted significant shortfall in copper supply starting from 2027 underscores the critical importance of copper exploration.
Richard Bennett, CEO at Getech, commented:
"This collaboration presents us with significant upside potential and minimal risks. In the event of a successful exploration campaign, we obtain a 5% stake in one or more mining assets. The option has transformative value creation potential, which we can monetise at various stages. This is therefore an exciting opportunity for Getech, and we are progressing other similar transactions where we are looking to leverage our data and expertise to secure asset participation in promising locations."
Alex Walker, CEO, East Star commented:
"Sediment-hosted copper deposits account for around 20% of global copper production and have the potential for Tier 1 deposits being sought by the global major mining companies. At no upfront cost to East Star, this play-type adds a potential third strand to East Star's copper strategy, which includes a VMS deposit and a BHP-backed porphyry exploration programme. We look forward to working with Getech to apply their unparallelled database and modern geoscientific expertise to underexplored basins in Kazakhstan."
Media Contact
Giancarlo, Getech, 44 7874950060, [email protected]
SOURCE Getech
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