20th Apr 2015 06:35
LONDON (Alliance News) - Petropavlovsk PLC on Monday said its Peter Hambro Mining (Cyprus) Ltd subsidiary has entered into a conditional deal to sell its stake in gold-mining company Koboldo to Global-Polymetall LLC for RUB942 million, or around USD18.7 million, in cash, plus reimbursement of VAT in the fourth quarter.
The gold mining company said the Koboldo business holds gold producing assets in the Amur region in the far east of Russia. It said that due to the relatively high costs but low gold production output, the Koboldo business is considered a non-core asset.
Petropavlovsk said the sale of the business will not impact on its ability to achieve its 2015 production target of 680,000 to 700,000 ounces of gold.
It added the sale of the business will allow it to further cut its debt position and reduces its portfolio of non-core holdings. It said its main focus remains the development of hard-rock mines in the Amur region.
By Sam Unsted; [email protected]; @SamUAtAlliance
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