Critical metals play Cygnus (CY5 AU) has entered into a Scheme with AIM-listed Central Asia Metals (CAML LN).
CAML is offering 0.06 new CAML shares for each Cygnus share, or a A$0.176/share indicative Offer price, which backs out a 60% premium to last close.
Cygnus shareholders will hold ~30% of the enlarged mining play. ~29% of Cygnus shareholders are supportive. Looks clean. Just no ASX listing for CAML (AFAIK).
Cygnus is illiquid - look away now if that is not your bag.
The Trade:
This appears another straightforward mining merger.
It may trade wide given the cross border nature of the transaction, and Cygnus’ illiquidity.
You could look to take down borrow in CAML.
Depending on your copper/lithium tilt, you might just want to be long Cygnus.