29th Apr 2016 16:08
LONDON (Alliance News) - Petropavlovsk PLC Friday said it has signed a share purchase agreement which will lead to the sale of its mining licenses covering the Visokoe deposit in Russia, and said it intends to sell its stake in Verkhnetisskaya Ore Mining Co very soon.
The company has sold the Visokoe deposit to the Yuzhuralzoloto group of companies, one of the largest Russian gold miners. Petropavlovsk said it will also "imminently" sell its 49% stake in Verkhnetisskaya Ore Mining Co, which holds licenses over the Verkhnetisskaya and Troeusovskaya deposits, to the same buyer.
The overall cash consideration for both transactions will be USD20.0 million, which will be used to reduce debt and for general corporate purposes.
The deal follows on from Thursday when Petropavlovsk revealed it made a USD141.6 million pretax loss in 2015, widening from the USD14.9 million loss that was booked in 2014. The miner also unveiled a new joint venture agreement and the acquisition of gold company Amur Zoloto LLC, which holds non-refactory reserves of 1.6 million ounces of gold and resources and reserves of 2.2 million ounces of gold.
Petropavlovsk shares closed up 1.8% to 8.30 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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