REG-Polymetal International plc Polymetal International plc: Polymetal completes the sale of Kapan

Polymetal International PKAnnouncement

30/01/2019 09:40

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   Polymetal International plc (POLY)
   Polymetal International plc: Polymetal completes the sale of Kapan

   30-Jan-2019 / 12:35 MSK
   Dissemination of a Regulatory Announcement that contains inside information
   according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   Release IMMEDIATE
   time                                                                       
           LSE, MOEX: POLY / ADR: AUCOY
   Date    30 January 2019

    

    

   Polymetal International plc

   Polymetal completes the sale of Kapan

   Polymetal International plc completes the previously announced sale of  Kapan
   to Chaarat Gold Holdings Limited (AIM: CGH) (together with its subsidiaries -
   "Chaarat") for a total consideration of US$ 55 million (the "Transaction"). 

   "Sale of  Kapan is  yet another  step to  concentrate and  upgrade our  asset
   portfolio", said  Vitaly  Nesis,  Group  CEO  of  Polymetal.  "On  behalf  of
   Polymetal, I wish  the employees of  Kapan and its  new owners success  going
   forward".

   Following satisfaction of all outstanding conditions to closing and requisite
   regulatory approvals, the Transaction was completed on 30 January 2019.

   The total  consideration payable  for Kapan  is US$  55 million,  subject  to
   post-closing working capital  and other customary  adjustments. Of the  total
   consideration, US$  10  million was  settled  in Chaarat's  2021  Convertible
   Notes. The  remaining US$  45 million  is payable  in cash,  of which  US$  5
   million was received by Polymetal in November 2018 as an advance payment  and
   US$ 40 million will be received within 5 working days following the execution
   of  certain  settlement  procedures  associated  with  Chaarat's   syndicated
   acquisition financing facility. The payment is secured by a pledge of Kapan's
   shares in favour  of Polymetal, which  will be released  upon the receipt  of
   remaining cash proceeds.

   Simultaneously with the  completion of  the sale, Polymetal  has agreed  with
   Dundee Precious  Metals  ("DPM"),  the  previous  owners  of  the  asset,  to
   terminate the royalty owed to  DPM via a buyout  for a cash consideration  of
   US$ 5.5 million, fully eliminating the Company's exposure to the asset.

   The transaction (including the royalty buyout)  is not expected to result  in
   any material gain or loss.

   Scotiabank Europe plc acted as financial advisor to Polymetal.

   About Polymetal  

   Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with  its
   subsidiaries - "Polymetal", the "Company", or the "Group") is a top-20 global
   gold producer and  top-5 global  silver producer  with assets  in Russia  and
   Kazakhstan. The Company combines strong growth with a robust dividend yield.

   Enquiries

       Media            Investor Relations
   FTI
   Consulting       Polymetal                    1 ir@polymetalinternational.com
              +44
   Leonid     20    Eugenia Onuschenko          +44 20 7016 9505 (UK)
   Fink       3727
              1000  Michael                     +7 812 334 3666 (Russia)
   Viktor           Vasiliev                   
   Pomichal
       Joint
       Corporate         
       Brokers
   Morgan
   Stanley    +44
              20
   Andrew     7425
   Foster     8000

   Richard          RBC Europe Limited
   Brown
                    Tristan Lovegrove           +44 20 7653 4000
   Panmure
   Gordon           Marcus Jackson

   Charles    +44
   Lesser     20
              7886
   James      2500
   Stearns

    

   FORWARD-LOOKING STATEMENTS

   THIS RELEASE  MAY  INCLUDE STATEMENTS  THAT  ARE, OR  MAY  BE DEEMED  TO  BE,
   "FORWARD-LOOKING STATEMENTS". THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY  AS
   AT THE  DATE  OF  THIS  RELEASE.  THESE  FORWARD-LOOKING  STATEMENTS  CAN  BE
   IDENTIFIED BY THE  USE OF  FORWARD-LOOKING TERMINOLOGY,  INCLUDING THE  WORDS
   "TARGETS",  "BELIEVES",   "EXPECTS",   "AIMS",  "INTENDS",   "WILL",   "MAY",
   "ANTICIPATES", "WOULD", "COULD"  OR "SHOULD"  OR SIMILAR  EXPRESSIONS OR,  IN
   EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF  STRATEGIES,
   PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE  FORWARD-LOOKING
   STATEMENTS ALL  INCLUDE  MATTERS THAT  ARE  NOT HISTORICAL  FACTS.  BY  THEIR
   NATURE, SUCH  FORWARD-LOOKING STATEMENTS  INVOLVE  KNOWN AND  UNKNOWN  RISKS,
   UNCERTAINTIES AND OTHER IMPORTANT FACTORS  BEYOND THE COMPANY'S CONTROL  THAT
   COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO
   BE MATERIALLY  DIFFERENT FROM  FUTURE  RESULTS, PERFORMANCE  OR  ACHIEVEMENTS
   EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING
   STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S  PRESENT
   AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY  WILL
   OPERATE IN  THE  FUTURE. FORWARD-LOOKING  STATEMENTS  ARE NOT  GUARANTEES  OF
   FUTURE PERFORMANCE. THERE  ARE MANY  FACTORS THAT COULD  CAUSE THE  COMPANY'S
   ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS  TO DIFFER MATERIALLY FROM  THOSE
   EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS
   ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO  ANY
   FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO  REFLECT  ANY  CHANGE  IN  THE
   COMPANY'S  EXPECTATIONS  WITH  REGARD  THERETO  OR  ANY  CHANGE  IN   EVENTS,
   CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED

    

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   ISIN:          JE00B6T5S470
   Category Code: DIS
   TIDM:          POLY
   Sequence No.:  7290
   EQS News ID:   770911


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:ir@polymetalinternational.com


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