18 Aug 2016 07:00
Release time | IMMEDIATE |
Date | 18 August 2016 |
Polymetal International plc
Polymetal increases its interest in Tarutin to 75%
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce that it has increased its interest in LLC "Vostochny Basis" (license holder for the Tarutinskoye copper deposit (Tarutin)) from 50% to 75%.
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 75%. The consideration comprises US$13.5 million payable by 898,875 newly issued Company shares ("Consideration shares", 0.21% 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 for a 14 calendar day period ending two calendar days prior to completion.
Аn application has been made to the London Stock Exchange and UKLA on the official list and the Consideration Shares are expected to be admitted to trading on the London Stock Exchange on 19 August 2016. Following admission, the total issued share capital of the Company will comprise 427,132,335 ordinary shares of no par value, each carrying one vote.
The Tarutin licence plot covers an area of 1.8 km2 in the Chelyabinsk region and is located 28 km from the town of Chesma (population of approximately 7,000) 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 deposit. Mining is currently expected to commence in 2018. The Ore Reserves in accordance with the JORC Code (2012) are estimated as follows:
Tarutin Ore Reserve estimate, as at 1 January 2016
Ore Reserves | Tonnage | Grade | Content | ||||||
Kt | Au (g/t) | Ag (g/t) | Cu (%) | GE (g/t) | Au (Koz) | Ag (Koz) | Cu (Kt) | GE (Koz) | |
Probable | 660 | 0.1 | 13 | 1.62 | 3.3 | 2 | 269 | 10.8 | 70 |
Total | 660 | 0.1 | 13 | 1.62 | 3.3 | 2 | 269 | 10.8 | 70 |
Note: Ore Reserves in accordance with the Company's ownership equal to 75%. Metal prices used for the estimate: Au = US$1,100/oz, Ag = US15.0/oz, Cu = US$5,000/t
"Given its developed infrastructure and proximity, Tarutin is now very well positioned to complement our resource base for Varvara, which is the main driver behind our decision to further increase our stake in this asset" - said Vitaly Nesis, Group CEO of Polymetal.
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
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