4th May 2018 09:01
LONDON (Alliance News) - Polymetal International PLC said Friday it has terminated the deferred consideration liability for the 2014 acquisition of Kyzyl gold project by issuing USD10 million worth of shares.
The miner acquired the Kyzyl project located in Kazakhstan in May 2014 for USD618.5 million in cash and stock and a deferred conditional cash consideration capped at USD500 million. The deferred consideration was dependent on the relative dynamics of the gold price and the price of Polymetal's shares over a period of up to seven years.
Under the agreement, Sky Tower, the current rights holder for the deferred consideration, will receive 1.0 million new Polymetal shares in return for the termination of the deferred consideration. As at December 31, the deferred consideration was estimated at USD12 million.
"The elimination of the liability is an important step in further de-risking the company's cash flow," said Polymetal Chief Executive Vitaly Nesis.
Shares in the company were trading 0.5% higher at 726.60 pence early Friday.
Related Shares:
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