Polymetal completes acquisition of Kyzyl gold project in Kazakhstan
Baku, Azerbaijan, Sept. 4
By Elena Kosolapova - Trend:
Polymetal International PLC, a leading gold and silver mining group, operating in Russia and Kazakhstan, completed acquisition of the entire issued share capital of Altynalmas Gold Ltd., the holding company for the Kyzyl gold project in Kazakhstan, the company reported.
The company bought the Kyzyl gold project from Sumeru Gold B.V. and Sumeru LLP.
The initial consideration for this acquisition comprised $318.5 million in cash and $300 million payable through the issue to Sumeru Gold B.V. of 31,347,078 new ordinary shares of the company, representing approximately 7.45 percent of the company's enlarged issued share capital.
Deferred additional cash consideration up to an agreed cap, contingent on certain conditions being met and dependent on the relative dynamics of the gold price and the price of Polymetal's shares, may be payable over the next seven years. Sumeru Gold B.V. is entitled to a put option giving it a right to require Polymetal to acquire or procure acquirers for the Consideration Shares by notice to Polymetal during the one month period immediately following the first anniversary of completion at a price per Consideration Share equal to $9.57027.
The Kyzyl gold project comprises the Bakyrchik and Bolshevik gold deposits and is located in northeastern Kazakhstan. The acquisition will increase Polymetal's gold equivalent reserves by approximately 50 percent. Bakyrchik contains 6.7 million ounces of gold maintaining 7.5 grams of gold per metric ton, and its life will reach 20 years.
Polymetal plans to start production at the Kyzyl Project in 2018 upon completion of the feasibility study.
Edited by C.N.