Polyus sells stake in gold deposit in Russia for $158 mln (updated)
21/03/2017 07:49
(Adds details, Polymetal and Polyus comments)
MOSCOW, March 21 (Reuters) - Polyus PLZL.MM , Russia's
largest gold producer, has agreed to sell its 82.34-percent
stake in a joint venture with Polymetal POLYP.L which holds
rights to develop the Nezhdaninskoye gold deposit, Polyus said
in a statement on Tuesday.
Polyus and London-listed Russian gold and silver miner
Polymetal entered into the joint venture (JV) to develop the
project in Russia's far eastern Yakutia region in late 2015.
The stake will be sold for $158 million to Ivan Kulakov,
former managing director of Highland Gold Mining HGM.L ,
another Russian gold producer, Polyus said.
Polymetal currently owns a 18-percent stake in the JV, is in
charge of operational activities at the deposit and has the
right to increase its stake in the JV to 50 percent by investing
$69 million over the next four years.
"Mr. Kulakov has become the counterparty to the joint
venture, replacing Polyus, while the key terms of the joint
venture operation and the earn-in mechanism for Polymetal remain
unchanged," Polymetal said in a statement.
As part of the deal between Polyus and Kulakov, $100 million
will be paid upon completion of the stake transfer and the
remaining $58 million once the project meets certain operational
and financial criteria, Polyus added.
"The successful completion of the deal will enable Polyus to
focus management and financial resources on its current pipeline
of large-scale open-pit projects," Pavel Grachev, Polyus chief
executive, said in the statement.
(Reporting by Polina Devitt; editing by Maria Kiselyova)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: RUSSIA POLYUS/M&A