Lucky Cement Limited has announced plans to invest up to Rs1.2 billion in its associated company, National Resources (Private) Limited (NRL), to support exploration efforts following a major copper and gold discovery in Chagai, Balochistan.
The company disclosed this development to the Pakistan Stock Exchange (PSX) on Monday.
“The Board of Directors of the Company has recommended that the Company makes further equity investment, of an amount of up to PKR 1.2 billion, in its associated company, NRL, by subscribing to shares of NRL and acquisition of additional 250 ordinary shares of NRL from Mr. Muhammad Ali Tabba, a related party of the Company,” read Lucky Cement’s notice.
The funding will be used by NRL to carry out pre-feasibility studies, including geology, drilling, and mineral resource estimation.
National Resources is a joint venture company, in which Lucky Cement holds 33.33% equity, and has been established to carry out activities in the field of exploration and mining of metals, mainly gold and copper.
However, Lucky’s investment in NRL is subject to necessary corporate and regulatory approvals, including the approval of the shareholders of the company in accordance with Section 199 of the Companies Act, 2017.
Recently, NRL has made a significant copper and gold mineralisation discovery within its licensed area in Chagai, Balochistan.
