1 Mar 2017 07:09
Release time | IMMEDIATE |
Date | 1 March 2017 |
Polymetal International plc
Payment of deferred consideration for Primorskoye property
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") announces the payment of a deferred consideration for the acquisition of the Primorskoye property.
Under the deal terms, the deferred consideration is based on the reserve estimate and paid in cash. However, the parties agreed for the deferred consideration to be based on the mineral resource estimate and paid in Company shares.
Therefore, the deferred consideration is equal to US$9.7 million1, which is US$13,333 per tonne of contained silver equivalent in Measured and Indicated Mineral Resources (or US$0.415 per silver equivalent ounce). The deferred consideration is payable by 815,348 newly issued Company shares ("Consideration shares") representing 0.19% of Polymetal's total increased share capital.
The Mineral Resource estimate was independently audited by CSA Global in accordance with the JORC Code (2012) as of 1 January 2017 and comprises 23.5 Moz (730 t) of silver equivalent of Indicated Resources at an average silver equivalent grade of 1,563 g/t, and 0.7 Moz (23 t) of silver equivalent of Inferred Resources at an average silver equivalent grade of 923 g/t.
Primorskoye is located in the Omsukchan district in the Magadan region, 215 km from Polymetal's Omsukchan concentrator and 15 km from the Sea of Okhotsk. The licenced area is remote with limited access: four months of winter road (Jan-Apr) and 4 months of summer navigation (Jun-Sept).
The Company plans to continue exploration at the property with the goal to release a reserve estimate (JORC compliant) in Q3 2018.
Аn application has been made to the London Stock Exchange and UK Listing Authority for the 815,348 Company shares to trade on the London Stock Exchange and to be admitted to the Official List, these Consideration shares are expected to be admitted to trading on 3 March 2017. Following this admission the total issued share capital of the Company will comprise 429,971,261 ordinary shares of no par value, each carrying one vote.
Note: 1) The number of shares was determined by dividing consideration by the unweighted mean average of Polymetal's closing share price for a one calendar month period ending two calendar days prior to completion.
Enquiries
| Media | Investor Relations | ||
FTI Consulting Leonid Fink Jenny Payne | +44 20 3727 1000 | Polymetal Maxim Nazimok Evgenia Onuschenko Maryana Nesis | ir@polymetalinternational.com
+7 812 313 5964 (Russia) +44 20 7016 9503 (UK) |
| Joint Corporate Brokers | |||
Morgan Stanley Sam McLennan Richard Brown | +44 20 7425 8000 | RBC Europe Limited Tristan Lovegrove Marcus Jackson | +44 20 7653 4000 |
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 CONTAINEDHEREIN 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