10th Aug 2020 07:55
(Alliance News) - Russian gold miner Polymetal International PLC said Monday it has signed an exploration joint venture with Russian engineering firm JSC Rosgeology, for the discovery of pyritic copper-zinc mineralisation at the Novopetrovskaya site in Russia.
Under the joint venture, the Limassol, Cyprus-based gold miner will acquire a 75% stake in Rosgeo's subsidiary - which owns the Novopetrovskaya area's licence - for a total cash payment of RUB490 million, or USD7 million.
The group has also been given a seven-year call option to acquire the remaining 25% interest following the Russian statutory reserve estimate.
In return, Polymetal will provide exploration funding sufficient to complete a reserve estimate, allowing for 100 kilometres in drill holes to be completed, resulting in a JORC-compliant mineral resource estimate by 2023.
Polymetal said it will provide the funding through shareholder loans.
"We continue to leverage our exploration strategy through joint ventures with dedicated and experienced professionals. Rosgeo is a recognized Russian leader in greenfield exploration, whose previous prospecting works at Novopetrovskaya proved its further exploration potential. This partnership reinforces our presence in the promising Urals region," said Chief Executive Officer Vitaly Nesis.
By Dayo Laniyan; [email protected]
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