SKBL Merges with Cove Kaz; Acquires Largest Undeveloped Tungsten Resource
Skyline Builders Group Holding Limited (SKBL) and Cove Kaz Capital Group LLC announced a definitive Transaction Agreement to effect a business combination. The combined entity, to be named Kaz Resources Inc., will trade on Nasdaq under "KAZR" and aims to supply critical minerals to the United States. This merger includes Cove Kaz's acquisition of a 70% stake in Severniy Katpar LLP, which holds the world's largest known undeveloped tungsten resource, estimated at 1.4 million tonnes of tungsten trioxide. The projects are projected to produce 12,000 mtpa of tungsten, with significant financial backing from EXIM Bank ($900 million) and DFC ($700 million) towards an estimated $1.1 billion development cost. The transaction is anticipated to close in late 2026 or early 2027.
Key Highlights
- Skyline Builders Group Holding Ltd (SKBL) and Cove Kaz Capital Group LLC entered a Transaction Agreement for a business combination.
- The combined company will operate as Kaz Resources Inc. and is expected to trade on Nasdaq under the ticker symbol "KAZR".
- Cove Kaz acquired a 70% ownership interest in Severniy Katpar LLP, which holds the largest known undeveloped tungsten resource globally.
- The resource contains 1.4 million tonnes of tungsten trioxide (WO3), representing approximately 70% of Kazakhstan's estimated resources.
- Projects are expected to produce 12,000 metric tonnes per annum (mtpa) of tungsten, representing approximately 15% of current global production.
- Export-Import Bank of the United States (EXIM) issued a Letter of Interest for up to $900 million in project financing.
- U.S. International Development Finance Corporation (DFC) issued a Letter of Interest for up to $700 million for debt financing and project development funding.
- Total development costs for the projects are estimated at approximately $1.1 billion.
- The business combination is expected to close in Q4 2026 or early 2027, subject to approvals.