Polymetal reduces ownership in Polygon Gold
Mining heavyweight Polymetal International has announced that its equity ownership in Polygon Gold, which owns the Veduga gold deposit in the Krasnoyarsk region of the Russian Federation, has decreased from 81.8 to 42.6 per cent.
Mining heavyweight Polymetal International has announced that its equity ownership in Polygon Gold, which owns the Veduga gold deposit in the Krasnoyarsk region of the Russian Federation, has decreased from 81.8 to 42.6 per cent.
The reduction has occurred partly as a result of an increase in Polygon's share capital by 471 shares to 1,571 for $14.2m, the proceeds of which will be used to finance the Veduga project and repay part of Polygon's debt.
In addition, Gazprombank has expressed an interest in providing project financing to Polygon to develop Veduga into a producing mine.
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
Also affecting the reduction, Polymetal sold 230 of its shares in Polygon to Sibproekt, a private Russian investor, for a total consideration of $8.0m.
"These deals represent logical continuation of our efforts to maximise the value of our stake in Polygon and ensure the availability of financing for the development of Veduga," said Vitaly Nesis, CEO of Polymetal.
NR
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%
Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the US
Medium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.