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
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.
10 vinyl records worth up to £10,000 - is one in your collection?
News Vinyl is experiencing a resurgence and collectors will pay up to £10,000 for some albums - is it time to dust off your old records?
By Marc Shoffman Published
FCA: Banks are still short-changing savers
The latest FCA review finds that while public shaming has encouraged providers into offering better deals on savings, many of those with closed accounts are still being shortchanged.
By John Fitzsimons Published