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.
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