Polymetal International plc
Solidcore Resources plc: Strategic partnership with Lancaster Group to develop Syrymbet polymetallic property in Kazakhstan

Solidcore Resources plc (“Solidcore” or the “Company”) is pleased to announce that it has entered into an agreement with Berkut Mining LLP (“Partner”), a subsidiary of Lancaster Group (multidisciplinary holding company), to acquire 55% interest in Syrymbet, an undeveloped polymetallic deposit located in North-Kazakhstan region.

“Syrymbet is a polymetallic deposit with tin as a major component, which perfectly fits our strategy of enhancing and diversifying Solidcore’s exposure to the green transition. Management believes the project will benefit from the Company’s execution expertise and successful track record in out-of-the box processing strategies”, said Vitaly Nesis, Group CEO of Solidcore Resources plc. “Together with the Partner, we are committed to driving the project forward while ensuring sustainable practices. We are aiming for Board approval for construction in 2025”.

HIGHLIGHTS

• The Syrymbet licence covers the area of over 10 km2 and is located in the Ayirtau district of the North-Kazakhstan region.
• Under the agreement, Solidcore will acquire a 55% interest in а private company “Tin One Holding” which indirectly holds the subsoil licence for Syrymbet, for the total cash consideration of US$ 82.5 million. The transaction will be financed from the Company’s existing cash resources and is expected to complete in Q4 2024, subject to obtaining of the required regulatory approvals.
• In 2024, Solidcore completed 3 km of drilling, aimed at validating historical exploration results and conducting metallurgical studies. The deposit is suitable for open-pit mining. Solidcore will refine the existing approach to processing to accelerate path to production, optimise capital expenditures and reduce environmental footprint of the project.  
• The partnership with Lancaster Group is a strategic alignment that allows to apply joint extensive experience to develop such a technologically complex polymetallic deposit as Syrymbet. Solidcore will be working closely with the Partner to accelerate project development, aiming to secure Board approval for construction in 2025.
• The project will bring about social investments in the region and create a significant number of permanent jobs with a focus on the local workforce.

STRATEGIC RATIONALE

Syrymbet fits well with Solidcore’s strategy in the following ways:

• Large asset with good exploration upside;
• Metal portfolio diversification with green transition exposure;
• Potential for fast development approach based on open-pit mining and conventional processing;

• Balanced risk-sharing ownership structure, providing Solidcore with the Partner’s valuable expertise and support, while allowing the Company to retain operational control over the project.

ABOUT THE PROPERTY

The Syrymbet licence area covers 10.15 km2 and is located in the Ayirtau district of the North-Kazakhstan region. The property is located 280 km from the regional centre, Petropavl (population of approx. 220,000), and 80 km from Kokshetau (population of approx. 180,000), an administrative centre of Aqmola Region. Currently, the property is accessible by unpaved roads and via the Ugolki railway station with loading facility under construction (30 km away). Full-scale operations will have access to a 220 kW power station located 27 km away.

Syrymbet was discovered in 1985, with further exploration activities and assessment works conducted between 1986 and 2012. A Mineral Resource estimate in accordance with the JORC Code (2012) was completed in 2015, followed by a pre-feasibility study in 2016. An updated Mineral Resource estimate was issued in 2018 as a part of the Definitive Feasibility Study. Technological studies and metallurgy design were continued between 2018 and 2020. A JORC-compliant Mineral Resource estimate comprised 492.4 Kt of tin at a grade of 0.40% and 91.4 Kt of copper at a grade of 0.07% (5.9 Moz  of GE[1]).

The deposit is a complex rare-earth-polymetallic deposit (Sn, W, Cu, CaF2) occurring within favorable lithological and structural settings. Four mineralisation zones within Syrymbet ore field are comprised of oxide and sulphide ore.

ABOUT TIN

Tin (periodic table symbol Sn) is a silvery-white, malleable metal with a slight blue hue. Although scarce, with only 0.001% found in the earth’s crust, tin is not considered rare. It is primarily found in cassiterite ores, often alongside base and rare earth metals. Tin’s unique properties and recyclability position it as a crucial material in production: the key applications include electronics, where it is essential for soldering, as well as in alloys, tin plating, and emerging technologies such as lithium-ion batteries for electric vehicles and photovoltaic cells for solar panels.

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FORWARD-LOOKING STATEMENTS

This release may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “should” or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company’s control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company’s present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company’s actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

[1] Gold equivalent Mineral Resources are estimated based on the Sn, Cu, Au spot prices as at 30.10.2024.