KAZ Minerals to buy Baimskoye field in Chukotka for $900 mln
MOSCOW, Aug 2 (PRIME) -- Kazakh copper producer KAZ Minerals has signed an agreement to buy the Baimskaya copper project of Roman Abramovich in RussiaТs Chukotka Autonomous District for U.S. $900 million in cash and shares, the company said on Thursday.
The sum includes an initial payment of $675 million and a deferred payment of $225 million.
The initial payment consisting of $436 million and 22.3 million of KAZ MineralsТ newly-issued shares is earmarked for a 75% stake in the project, while the remaining 25% will be purchased either with shares or cash depending on the projectТs implementation.
The Baimskoye depositТs JORC resources are estimated at 9.5 million tonnes of copper with an average content of 0.43% and 16.5 million ounces of gold with an average content of 0.23 grams per tonne.
An average annual output at the field over the first 10 years of operations is projected at 250,000 tonnes of copper and 400,000 ounces of gold.
Capital expenditures on the mine development are estimated at U.S. $5.5 billion and could be revised during a feasibility study.