Polymetal to buy Maminskoye gold deposit

Precious metals group Polymetal International said its subsidiary JSC Polymetal will buy ZAO Maminskaya Gornorudnaya kompania, which holds an exploration and mining licence for a gold mining field in the Sverdlovsk region of Russia.

MGK's exploration and mining licence for the Maminskoye gold mining field is valid until 2023. Polymetal said the agreed enterprise value of MGK is US$95.5m.

The Russian gold and silver producer said the total consideration payable for the shares in MGK at completion of the transaction is equal to $77.2m, which is the agreed enterprise value reduced by the amount of debt of MGK outstanding at completion estimated to be $18.3m.

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Polymetal CEO Vitaly Nesis said: "Maminskoye is the type of project Polymetal is keen on - capital-light, low-risk, and with significant optionality."

"The current size of the resource base is not very large, but we are optimistic about its exploration potential and satisfied with the first addition to Polymetal's portfolio of third generation assets," he added.

CJ