15th Oct 2018 08:36
LONDON (Alliance News) - Polymetal International PLC on Monday said it agreed to increase its holding in Veduga gold deposit in Russia to 74% through the acquisition of a 32% stake in licence holder Amikan LLC.
The mining company said it will pay the total consideration of USD19.7 million through the issue of 2.5 million shares at a price of USD8.04 each.
Polymetal was trading 1.3% higher on Monday at 673.60 pence per share.
Veduga is a high-grade refractory gold deposit with reserves of 1.4 million ounces of gold. Polymetal has been a partial owner of the property since 2006 with the original 50% stake acquired through the joint venture with miner AngloGold Ashanti Ltd.
"Obtaining a controlling stake in Veduga will allow us to explore multiple strategic options for this large and high-grade asset, including potentially selling the asset as it remains non-core for Polymetal," explained Chief Executive Vitaly Nesis.
"In the meantime, Polymetal will continue to process Veduga's high-grade ore at our existing processing facilities," added Nesis.
Related Shares:
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