Polymetal branches out into platinum group metals

Precious metals group Polymetal is to buy up the Svetlobor platinum exploration project in the Sverdlovsk region of Russia through two transactions, the company announced on Tuesday morning.

The company said that the acquisitions gives it meaningful exposure to platinum, "a precious metal with limited production outside South Africa and Zimbabwe, countries which face a material risk of significant supply disruptions"

Polymetal has acquired a 24.99% stake in Svetlobor from Ubergot Investments in exchange for 130,053 Polymetal shares.

Meanwhile, CJSC VTB Capital has bough the remaining 75.01% interest in exchange for 390,369 Polymetal shares and has agreed to sell this stake on to Polymetal for $6.9m (plus interest) following receipt of regulatory approval.

The transactions will see Polymetal take full ownership of CJCS Nevyansk, a Russian legal entity which holds the mining and exploration licence for the Svetlobor area until November 2031.

"I am very excited about Polymetal's first acquisition in PGMs. I see great upside in the platinum price and am optimistic about our ability to successfully define the hard-rock source of the largest alluvial platinum deposit in the world", said Vitaly Nesis, the Chief Executive Officer of Polymetal.