Solidcore Resources, a leading gold producer in Kazakhstan, has announced that it has entered into an agreement with Minerals Development Oman (MDO) to set up a joint venture to explore and further develop the Khabiyat copper-gold project in the sultanate.

Solidcore said the company would initially buy a 20% stake in the JV and later increase the stake to upto 60% in stages.

During the first stage, Solidcore will invest $8 million in the JV's capital, which will be used to finance the geological exploration programme. 

As per the deal, the top Kazhak goldminer will pay $500,000 to MDO for the 20% stake as an initial payment and an additional $1.5 million upon completion of the first stage. During the second stage, Solidcore will have the option to acquire an additional 25% stake in the JV. 

The company's investment in further geological exploration and the preparation of a mineral resource estimate will total $20 million. And in the third stage, it will pay an additional $1.5 million to MDO. 

In the third stage, Solidcore will also have the option to acquire an additional 15% stake in the project, increasing its participation to 60%. 

On the strategic move, Solidcore CEO Vitaly Nesis said: “We are pleased to partner with MDO on this transaction, which will be our first exploration project outside Kazakhstan as part of Solidcore's strategy to pursue disciplined growth and diversify our asset portfolio.”

“The Khabiyat project is an important starting point for expanding our presence in the region, and it has the potential to become the foundation for a future mining and processing hub in Oman,’ he stated. 

Solidcore remains the second largest gold producer in Kazakhstan following the sale of its Russian business. A consortium of Omani investors led by Omani state-owned fund Mercury Investments International is the largest shareholder with a 31.7% stake, he added.