Polymetal says to get 3.5% in Chaarat after $10 mln bond conversion

MOSCOW, Jul 30 (PRIME) -- Polymetal Int, uniting the assets of Russian precious metals producer Polymetal International, will receive a 3.5% stake in company Chaarat after converting U.S. $10 million of bonds received as payment for the Kapan gold mine in Armenia, the company said in a statement on Tuesday.

“Exchange of convertibles into Chaarat stock, working capital settlement, and release of warranties and indemnities ensure Polymetal’s direct exposure to Chaarat’s performance while limiting legacy jurisdictional risks,” Vitaly Nesis, Group CEO of Polymetal, said, as cited in the statement.

Polymetal sold the Kapan mine to Chaarat Gold in January for $55 million, $10 million of which was paid in Chaarat’s convertible bonds maturing in 2021.

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