Polyus to buy Rostec’s stake in Sukhoi Log for $128.2 mln early

MOSCOW, Sep 23 (PRIME) -- Russian precious metals producer Polyus plans to speed up consolidation of a 100% stake in SL Gold, developing the Sukhoi Log gold deposit, by acquiring the remaining 22% from state industrial corporation Rostec for U.S. $128.2 million, Polyus said in a statement on Wednesday.

“Polyus and Rostec have agreed to amend the terms of a number of options relating to Rostec’s participation interest in SL Gold that were entered into in July 2017, to allow Polyus to purchase Rostec’s 11.3% participation interest in SL Gold at the initially agreed valuation of $65.7 million for cash consideration instead of Polyus’s shares,” the statement read.

“(Polyus and Rostec have also agreed) to accelerate the exercise of all outstanding Polys’s call options relating to Rostec’s interest in SL Gold a result of which Polyus will buy out Rostec’s entire stake of 22% in SL Gold for $128.2 million, all payable in cash,” it also read.

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