24th Dec 2015 07:25
LONDON (Alliance News) - FTSE 250-listed metals miner Polymetal PLC on Thursday said it has entered into a joint venture with OJCS Polyus Gold, under which the former will work on developing the Nezhdaninskoye gold deposit in Yakutia in Russia.
Polymetal will acquire a 50% stake in the JSC South-Verkhoyansk Mining Co business, which holds the rights to the deposit.
Under the first stage of the joint venture, Polymetal will acquire a 15.3% stake for a USD18.0 million investment, which will be used to fund the activities of the joint venture. Polymetal will then have the option, following completion of the first phase, to participate in an earn-in arrangement to give it a stake of up to 50% in the venture.
The second stage of the investment will involve USD72.0 million in cash being paid by Polymetal to fund the construction and ramp-up of the underground mine at the site. Polymetal will be the managing partner in the joint venture.
By Sam Unsted; [email protected]; @SamUAtAlliance
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