Mari Energies Limited (MARI), formerly Mari Petroleum Company Limited, has entered into a definitive agreement to acquire a 5% stake in Kohesultan Mining Company Limited (KMCL).

On Wednesday, the listed company shared the development in its notice to the Pakistan Stock Exchange (PSX).

“We are pleased to announce that Mari Minerals (Private) Limited (MARI) (formerly, Mari Mining Company (Pvt) Limited), a wholly owned subsidiary of Mari Energies Limited, has entered into a definitive agreement, subject to requisite regulatory approvals, to acquire a 5% interest in Kohesultan Mining Company (Private) Limited (KMCL) from Siahkoh Mining Development (SMC-Private) Limited (SMD),” read the notice.

KMCL is a joint venture between SMD and MCC Tongsin Resources Ltd (MCCT) and is managing the Siahdiq Copper Project in Chagai, Balochistan.

“This acquisition aligns with our strategic objectives, marking a key step in Mari Energies’ broader efforts to diversify into near-core sectors and contribute towards the enhancement of the growth and sustainability of Pakistan’s mineral sector,” the company added.

Mari Energies Limited is a public limited company incorporated in Pakistan on December 4, 1984, under the Companies Ordinance, 1984 (now superseded by the Companies Act, 2017).

The company is principally engaged in the exploration, production, and sale of hydrocarbons.

By operating the country’s largest gas reservoir at Mari Gas Field, Daharki, Sindh, MARI is the second largest producer of natural gas.

In August 2023, MARI’s Board of Directors (BoD) announced the issue of bonus shares for the year June 30, 2024, of 800% i.e. eight shares for every one share held, from the Capital Redemption Reserve Fund and the balance from Revenue Reserves.

“The issuance of bonus shares is a reflection of the increasingly strong balance sheet of the company to grow and diversify further,” the company said at the time.