Polymetal sells assets of Sopka field for 800 mln rbl, 1% royalty

MOSCOW, Mar 26 (PRIME) -- Russian precious metals producer Polymetal International has raised 800 million rubles and a 1% net smelter return from the sale of assets of the Sopka field, the company said in a statement on Thursday.

The assets were united in company Irbychan Gold with non-core assets of the Omolonsky hub. Production at the assets stopped in 2018 and all remaining ore with a high content was refined on the Kubaki plant.

"Polymetal sold Irbychan Gold to an unrelated Russian private mining company. The transaction consideration comprises of 800 million rubles fixed upfront cash payment and 1% annual net smelter return payable if gold price exceeds U.S. $1,500 per ounce," Polymetal said.

The net smelter return limit was set at $50 million in ruble equivalent. The buyer will also compensate Polymetal for the exchange rate difference between the dollar equivalents and the fixed payment under the contract (of 800 million rubles) as of December 31, 2022 and January 30, 2020.

(77.7928 – U.S. $1)

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