Polymetal says consolidates 100% stake in Nezhdaninskoye deposit

MOSCOW, Nov 29 (PRIME) -- Russian gold producer Polymetal International has consolidated 100% the Nezhdaninskoye in gold ore deposit, after buying an 82.3% stake from companies owned by businessman Ivan Kulakov, Polymetal said in a report on Thursday.

The purchase encompassed two deals: the acquisition of 7% for U.S. $8 million in cash under a deal announced on July 17, 2017; and the purchase of a 75.3% stake for $144 million, of which $10 million were in cash and $134 million represented by 13.5 million new common shares of the company, which is 2.9% of its extended charter capital.

The total size of the acquisition of 100% in the field stands $185 million, which is $42 per ounce of gold equivalent of the ore reserves, or $15 per gold equivalent of the mineral reserves.

“This transaction enables us to start mining at the Nezhda immediately and begin construction in March 2019. We expect to deliver first production in 2021 with a full-ramp up in 2022,” CEO Vitaly Nesis said, as cited in the statement.

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