Polymetal sells 100% in Khakanja project for $30 mln

MOSCOW, Dec 17 (PRIME) -- Russian gold producer Polymetal International has sold its 100% stake in the Khakanja project in the Khabarovsk Region to a group of unrelated private Russian buyers for U.S. $30 million, the company said on Monday.

Under terms of the deal, $5 million will be payable in cash and $25 million in the form of assumed net debt with no further recourse to Polymetal.

The loss on the disposal will amount to approximately $15 million based on the carrying value of the Khakanja operations as of November 30, 2018.

The deal is expected to be closed by the end of 2018.

The assets sold comprise a processing plant with a production capacity of 600,000 tonnes a year , other related infrastructure at Khakanja, and old stockpiles at Khakanja, Avlayakan and Ozernoye deposits with current ore reserves of approximately 100,000 ounces of gold equivalent.

The transaction also includes advanced exploration properties of Kundumi with estimated mineral resources of 140,000 ounces of gold equivalent as of 1 January 2018, and Mevachan. The assets are located in the Okhotsk and Ayan-May municipal districts of the Khabarovsk Region.

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