12th May 2020 10:40
(Alliance News) - Polymetal International PLC on Tuesday said it has secured a loan of RUB5.7 billion - around USD77 million - from the Far East & Arctic Development Fund.
The 10-year loan has a fixed 5% interest rate and is repayable in equal quarterly instalments from December 2023 until May 2030.
The Russian mining company said the cash will be used to partially finance construction of the second stage of the Amursk pressure oxidation plant in the far east of Russia during 2020 and 2021.
"We welcome the fund's involvement in the POX-2 project as a significant financing partner. Our project is important for the entire far east region, and we are pleased to secure long-term low-cost financing with a smooth repayment profile", said Polymetal Chief Executive Vitaly Nesis.
Capital expenditure for the construction project until the end of 2020 is expected to be around USD100 million with the total investment until the end of the construction expected to be USD312 million.
Full ramp-up of the Amursk plant is scheduled for the fourth quarter of 2023.
Polymetal shares were trading 4.1% lower at 1,590.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
POLY.L