25th Mar 2020 10:23
(Alliance News) - Russian gold producer Petropavlovsk PLC on Wednesday said it has struck an agreement related to a deal to take sole ownership of TEMI LLC from Agestinia Trading Ltd.
Petropavlovsk currently has a 75% stake in TEMI, with Agestinia holding the remaining 25%.
TEMI holds the licences for the Elginskoye ore field and Afanasievskaya prospective ore area.
Back in May 2019, the company agreed a deal to acquire the stake for up to USD60 million, or a reduced USD53.5 million if it sealed the deal before May 20, 2020.
This could be paid in cash or in Petropavlovsk shares.
Shares in the company were 1.7% lower at 21.10 pence each in London on Wednesday morning.
The exercise period for the option was 730 days, from May 22, 2019.
Petropavlovsk said: "In the current period of significant market volatility, in order to fix the dilution for Petropavlovsk shareholders in the event it exercises the option, an amendment agreement has been agreed."
In order for the amendment to be effective, it must be executed in front of a notary in Russia, something which Petropavlovsk said would be difficult given that the country has adopted restrictive travel measures due to Covid-19.
As a result, Petropavlovsk has secured a further pact, agreeing to attend the notary meeting on 72 hours notice.
By Eric Cunha; [email protected]
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