Kazakhstan Tungsten Developer Drops Skyline Merger, Plans Direct U.S. Listing
Cove Kaz, the U.S. company developing two tungsten deposits in Kazakhstan, has ended its merger with Skyline Builders and plans a direct U.S. listing in the first half of 2027, backed by a new $32 million equity commitment.
Cove Kaz Capital Group, a U.S. company developing two tungsten deposits in Kazakhstan, has called off its planned merger with Skyline Builders Group Holding. Instead, it plans to list directly on a U.S. stock exchange in the first half of 2027. Both companies announced the mutual termination on November 2.
Alongside the change, American Ventures has committed $32 million to buy four million Cove Kaz shares at $8 each, valuing the company at about $1.97 billion. The investment is still subject to closing conditions. Executive Chairman Pini Althaus said the money will go toward engineering and construction work to speed up production.
Before listing, Cove Kaz plans to reincorporate as a Delaware corporation and rename itself Kaz Resources Inc. It also intends to add affiliated Kazakhstan assets, subject to approval from the Kazakh government and other regulators. Skyline will keep an equity stake of roughly 26%. The company has not said which exchange it will use, but expects to file a registration statement with the U.S. Securities and Exchange Commission.
The venture covers the Northern Katpar and Upper Kairakty deposits in the Karaganda Region. Cove Kaz holds 70% of the license holder, and Kazakhstan's national mining company Tau-Ken Samruk holds the other 30%. A feasibility study began in July. The U.S. Export-Import Bank and the International Development Finance Corporation have signaled preliminary interest in financing of up to $900 million and $700 million, respectively.
The project is part of expanding cooperation between the United States and Kazakhstan on critical minerals.
Sources: The Times of Central Asia; Cove Kaz press releases on Business Wire; Skyline release on GlobeNewswire.