Russia’s Polymetal to buy 5% in Prognoz silver field

MOSCOW, Jan 19 (PRIME) -- Russian silver and gold producer Polymetal International will buy 5% in the Prognoz silver field for U.S. $3 million through an acquisition of 10% in Polar Silver Resources, which indirectly controls 50% in the field, Polymetal said in a statement on Thursday.

Polymetal also has an option for raising the stake in the field, located in the republic of Yakutia, for 50% which may be used after a feasibility study of the project for the field’s development and revaluation of reserves is done, but no later than on March 31, 2020.

The price of the remaining 45% will be defined as of the date of when the option is exercised and will depend on the field’s reserves and on the market price of silver.

Currently, the field’s reserves are estimated at more than 9,000 tonnes of silver. A group of private investors own 50% in the Prognoz field.

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