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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
