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17 Mar 2015 09:25
Release time | IMMEDIATE |
Date | 17 March 2015 |
Polymetal International plc
Polymetal increases itsinterest in Tarutin to 50%
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") has agreed to increase its interest in LLC "Vostochny Basis" (holder of license for Tarutinskoye copper deposit (Tarutin)) from current 25% to 50%.
Following the successful exploration results at Tarutin area, Polymetal has purchased an additional 25% from Gerosena Trading Ltd, the owner of the remaining stake in LLC "Vostochny Basis", increasing the Company's interest in Tarutin to 50%. The consideration comprises US$14.2 million payable by 1,746,692 newly issued Company shares (0.41% of Polymetal's increased ordinary share capital). The amount of shares was determined by dividing consideration by the unweighted mean average of Polymetal's closing share price during 14 calendar day period ending two calendar days before completion.
As result of the issuance of consideration shares, Polymetal's share capital will comprise 422,566,635 shares. Consideration shares are expected to be admitted to trading on or around 18 March 2015.
The Tarutin licence plot covers an area of 1.8 km2 and is located 28 km from the town of Chesma (population approximately 7,000) in the Chelyabinsk region of Russia and approximately 150 km by road from the Varvara copper-gold mining operation in Kazakhstan, which is owned by the Company. The infrastructure in the region where the licence area is located is well developed, with a railway station located 20 km from the deposit.
Tarutin is a conventional copper-gold skarn mineralization.
Following the results of 2013-2014 drilling campaign on the deposit, Polymetal performed a JORC-compliant mineral resources estimate for the Tarutinskoye copper deposit up to the depth of 200m from the surface. The results of the resource estimate are summarised in the table below.
Tarutin Mineral Resources estimate, as at January 1, 20151
Mineral Resources1 | Tonnage | Grade | Content | ||||
Kt | Au (g/t) | Ag (g/t) | Cu (%) | Au (Koz) | Ag (Koz) | Cu (Kt) | |
Indicated | 6,080 | 0.09 | 7.52 | 1.12 | 17 | 1,470 | 68 |
Measured + Indicated | 6,080 | 0.09 | 7.52 | 1.12 | 17 | 1,470 | 68 |
Inferred | 4,170 | 0.09 | 6.37 | 0.81 | 12 | 853 | 34 |
Measured + Indicated + Inferred | 10,250 | 0.09 | 7.05 | 0.99 | 30 | 2,324 | 101 |
1Discrepancies in calculations are due to rounding.
Mineral Resources were estimated as of 01.01.2015 for open pit at the following prices: Au = 1,200 $/oz, Cu = 5,600 $/t, Ag = 17 $/oz. COG Cu Eqv = 0.4%.
"I am pleased to report that following our maiden resource estimate, we decided to increase our stake in this asset" - said Vitaly Nesis, Group CEO of Polymetal. - "Given its developed infrastructure and proximity, Tarutin is now very well positioned to complement our resource base for Varvara."
Enquiries
| Media | Investor Relations | ||
Instinctif Partners Leonid Fink Tony Friend | +44 20 7457 2020 | Polymetal Maxim Nazimok Evgenia Onuschenko Elena Revenko | ir@polymetalinternational.com
+7 812 313 5964 (Russia) +44 20 7016 9503 (UK) |
| Joint Corporate Brokers | |||
Morgan Stanley Bill Hutchings Sam McLennan | +44 20 7425 8000 | RBC Europe Limited Darrell Uden Jonny Hardy | +44 20 7523 8350 |
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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