Minerals Development Oman (MDO) recently signed a partnership agreement for a North Batinah project with Kazakhstan-based Solidcore Resources. The mining company will acquire a maximum 60% stake through a phased investment programme linked to exploration and development milestones.
Minerals Development Oman Agreement Focuses On Khabiyat Project
The joint venture centres on the Khabiyat project, located 29 kilometres from Suhar within Minerals Development Oman concession area 11B. The agreement reflects Oman’s efforts to attract international investment into its mining sector and marks the company`s first exploration venture outside Kazakhstan.
Under the agreement, Solidcore will acquire its stake through a three-stage earn-in mechanism tied to technical and investment targets. Initially, the company will acquire a 20% interest by contributing OMR 3.07 million (USD 8 million) to fund exploration activities. This first phase will last approximately two years and Minerals Development Oman will receive OMR 0.57 million (USD 1.5 million) once finished. Subject to successful completion, Solidcore may increase its stake by 25% through an OMR 7.69 million (USD 20 million) investment. This capital will finance additional exploration and a Joint Ore Reserves Committee (JORC) compliant Mineral Resource Estimate.
Mining Sector Development Key Pillar Of Economic Diversification
If it proceeds to the third stage, they will pay OMR 0.57 million (US 1.5 million) to Minerals Development Oman. Accordingly, completion of the final stage would allow Solidcore to increase its holding to 60%. Purchase price will be based on the project’s copper-equivalent mineral resources and average trading multiples of a selected peer group. Subsequent project development will be funded by both partners in proportion to their respective shareholdings.
The agreement comes as Oman expands its mining industry as a key pillar of economic diversification under Vision 2040. It has identified copper exploration as one of the country’s priority minerals for future development.
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