Polyus Gold completes sale of assets in Kazakhstan and Kyrgyzstan

Business Materials 1 March 2013 10:12 (UTC +04:00)

Azerbaijan, Baku, March 1 / Trend E. Kosolapova/

Polyus Gold International Limited completed the transaction for the sale of its assets in Kazakhstan and Kyrgyzstan, the company reported.

The assets were sold to a consortium consisting of Institute Project B.V., Financial Services B.V. and Folkstand Consortium Limited.

Romanshorn LC AG, a wholly owned subsidiary of the Company, and the Company have sold 100 percent of the shares in Kazakhaltyn to Institute Project B.V. for a cash consideration of $10 million less applicable withholding tax of $1.5 million.

Jenington International Inc., an indirect subsidiary of the Company, has novated all of its rights and obligations under all the loan agreements between Kazakhaltyn, as borrower, and Jenington, as lender, to Institute Project B.V. and Financial Services B.V. for an aggregate cash consideration, after adjustment in accordance with the transaction agreements, of $ 287,782,137.

Moreover, Polyus Gold has completed the sale of 100 percent of the shares in Norox Mining Company Limited to Folkstand Consortium Limited for a cash consideration of $1 million.

Kazakhaltyn is the holding company of the Polyus Gold's operating subsidiaries in Kazakhstan. Norox Mining Company Limited is the holding company of the company's operating subsidiaries in Kyrgyzstan. These operating subsidiaries mainly comprise of the following mining operations in Northern and Eastern Kazakhstan: the Aksu mine (which consists of the Aksu mine and adjacent Quartzite Hills deposits), the Bestobe mine, the Zholymbet mine and the Akzhal mine. In addition, these assets include development properties in Northern, Eastern and Central Kazakhstan as well as exploration projects at Yuzhny Karaultube and Kaskabulak. The value attributable to the gross assets being sold was $405 million as at 30 June 2012 and the segment profits attributable to these assets for the 6 months ended 30 June 2012 were $23 million, in each case in accordance with the Company's interim financial report for the six months ended 30 June 2012.