Polyus Gold International Limited
PJSC Polyus signs agreement to sell its stake in the Nezhdaninskoye gold deposit
Polyus Gold International Limited (“PGIL”) notes the announcement today by PJSC Polyus (“Polyus” or the “Company”) that a 100% subsidiary of the Company, JSC Polyus, has signed an agreement for the sale of its 82.34% stake in a joint venture entity with Polymetal holding 100% of JSC South-Verkhoyansk Mining Company (“SVMC”). SVMC holds the mining and exploration license for the Nezhdaninskoye gold deposit (“Property”) in Yakutia, Russia. The stake will be sold for a total consideration of $158 million to a company beneficially controlled by Mr. Ivan Kulakov, a former managing director of Highland Gold Mining.
The consideration will be paid in two installments, with $100 million paid upon completion of the stake transfer and the remaining contingent part of $58 million – once the project meets certain operational and financial criteria.
Completion of the transaction will be subject to obtaining all necessary corporate and regulatory approvals.
Polyus and Polymetal entered into the joint venture in December 2015. Polymetal is acting as the managing partner of the joint venture, responsible for the development, engineering and construction management of the Property.
Pavel Grachev, Chief Executive Officer of Polyus, commented:
“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 and achieving our production target of at least 2.7 moz by 2020.”