Skyline Builders Group Holding Limited, listed on Nasdaq under the ticker SKBL, and Cove Kaz Capital Group, a U.S.-backed geological exploration and mining company with operations in Kazakhstan, have entered into a Transaction Agreement to effect a business combination. The combined company will operate under the name Kaz Resources and trade on Nasdaq under the ticker KAZR. The transaction is expected to close in the fourth quarter of 2026 or early 2027, subject to shareholder and regulatory approvals.
At the heart of the transaction is Cove Kaz’s acquisition of a 70% ownership interest in Severniy Katpar, which holds the largest known undeveloped tungsten resource globally. The most recent feasibility studies report total JORC-compliant mineral resources containing 1.4 million tonnes of tungsten trioxide, representing approximately 70% of Kazakhstan’s estimated 2 million tonnes of tungsten resources. Production plans support approximately 12,000 metric tonnes per annum, representing roughly 15% of current global production.
The Export-Import Bank of the United States has issued a Letter of Interest for up to $900 million in project financing, and the U.S. International Development Finance Corporation has issued a Letter of Interest for up to $700 million. Total development costs are estimated at approximately $1.1 billion. Through its wholly owned subsidiary Kaz Critical Minerals, the combined company also holds 15 critical minerals concessions in Kazakhstan covering rare earth elements, lithium, tantalum, beryllium, niobium, cesium, and tin, as well as a 75% interest in the Akbulak Rare Earth Project.
KEY QUOTES:
“Cove Kaz is positioned to become a global leader in the mining, extraction, and processing of strategic minerals and metals aimed towards the United States defense and industrial base, specifically tungsten. This transaction demonstrates the continued financial growth of our business and will support our financial plan to develop and construct mining and processing projects throughout Kazakhstan.”
Pini Althaus, Executive Chairman, Cove Kaz
“With this transaction, Skyline will be fulfilling its 2025 announced strategic direction to become a material supplier of critical minerals to the United States. The combined company is poised to develop multi-generational projects to supply the United States with tungsten, lithium, rare earths, beryllium, tantalum, niobium, rubidium, and other critical minerals.”
Paul E. Mann, Executive Chairman, Skyline Builders
