17th Mar 2015 09:49
LONDON (Alliance News) - Polymetal International PLC Tuesday said it has doubled its stake in LLC Vostochny Basis which holds the Tarutin copper deposit in Russia to 50% from 25%.
Polymetal said it purchased the 25% stake from Gerosena Trading Ltd for a consideration of USD14.2 million, payable by over 1.7 million new shares in Polymetal, which represents 0.4% of the company's issued share capital, it said.
Polymetal shares were trading 0.7% higher on Tuesday morning at 506.00 pence per share.
The company said it increased its stake after receiving a maiden resource estimate for the project.
"I am pleased to report that following our maiden resource estimate, we decided to increase our stake in this asset. Given its developed infrastructure and proximity, Tarutin is now very well positioned to complement our resource base for Varvara," said Vitaly Nesis, chief executive of Polymetal.
The measured plus indicated mineral resource estimate for the Tarutin license totals 6 million tonnes of ore at 0.09 grammes of gold per tonne for 17,000 ounces of gold, 7.52 grammes of silver per tonne for 1.4 million ounces of silver with a copper grade of 1.12% for 68,000 tonnes of copper.
The measured plus indicated plus inferred mineral resource stands at 10.3 million tonnes of ore at 0.09 grammes of gold per tonne for 30,000 ounces of gold, 7.05 grammes of silver per tonne for 2.3 million ounces of silver with a copper grade of 0.99% for 101,000 tonnes of copper.
By Joshua Warner; [email protected]; @JoshAlliance
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