12th Mar 2019 13:30
LONDON (Alliance News) - Russian miner Petropavlovsk PLC on Tuesday said shareholders have approved a plan to guarantee obligations of an investee.
Shareholders voted 84% in favour of the motion, with turnout at 69%.
Petropavlovsk is to guarantee the obligations of Kimkano-Sutarsky Mining & Beneficiation Plant LLC, a wholly-owned subsidiary of 31% investee IRC Ltd, in two "broadly" identical agreements with Gazprombank Joint Stock Co.
Non-Executive Chair Roderic Lyne commented: "The completion of the guarantee restructuring process in relation to IRC's debt obligations is a significant step forward in the board's strategy to deliver shareholder value.
"The repayment schedule of the new facility with Gazprombank better aligns with the proposed ramp up of K&S's production and the anticipated revenues IRC will generate as a result. In addition, Petropavlovsk will benefit from a USD63 million aggregate cash inflow via the repayment by IRC of two bridge loans and a guarantee fee," he continued.
"The restructuring of IRC's debt issue allows the company to focus on monetising the value embedded in our refractory gold reserves through the Pokrovskiy pressure oxidation hub, allowing Petropavlovsk to de-lever its balance sheet and generate meaningful long-term returns for all of our stakeholders."
Shares were 1.8% lower on Tuesday at a price of 7.70 pence each.
Related Shares:
POG.L