2nd Mar 2016 08:00
LONDON (Alliance News) - Miner Polymetal PLC on Wednesday said it has struck a deal to acquire the Kapan gold mine in Armenia from Dundee Precious Metals Inc.
Polymetal will pay USD25.0 million to acquire the site, which it said should offer synergy benefits with its Lichkvaz deposit and help streamline its cost structure.
The consideration will comprise USD10.0 million in cash and USD15.0 million in Polymetal shares, it said, without providing any pricing information. The deal is expected to complete in the second quarter of 2016.
At the end of December 2014, the indicated and inferred resource for the site was estimated at 15.9 million tonnes, containing around 1.4 million ounces of gold, 24 million ounces of silver, 80,000 tonnes of copper and 270,000 tonnes of zinc.
"We believe Polymetal can transform Kapan from a low-margin asset into a capital-light profitable regional processing hub with sizable production," said Polymetal Chief Executive Vitaly Nesis.
"We believe that opportunistic acquisitions in jurisdictions we know well is the right way to create shareholder value at the current point in the cycle," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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