Acquisition

RNS Number : 7904S

Polymetal International PLC

13 July 2015

 



Release time	IMMEDIATE
Date	13 July 2015

Polymetal International plc

Acquisition of Primorskoye property

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") has purchased a 100% interest in the company holding the licence for the Primorskoye silver-gold property located in the Magadan region of Russia from Decamor Investments Limited.

The consideration for the acquisition comprises:

·      initial consideration of US$4.5 million payable by issuing 533,301 new Company shares 0.1% of Polymetal's increased ordinary share capital)¹.

·      deferred conditional cash consideration, with the exact amount based on the audited reserve estimate and equal to of US$13,333 per tonne of contained silver equivalent (translating into US$0.415 per silver equivalent ounce).

Polymetal intends to complete at least 15 km of exploration drilling before 30 September 2016 and plans to obtain an audited JORC-compliant reserve estimate under the JORC standard and pay the deferred consideration before 31 December 2016. The audit of the reserve estimate will be undertaken by a recognised independent international consultant.

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 licence area is remote with access limited to four months of winter road (Jan-Apr) and 4 months of summer navigation (Jun-Sept).

The current statutory Russian resource report (not compliant with the JORC Code) estimates in situ mineralised material of 500 kt at the average grade of 987 g/t silver and 5.8 g/t gold (no top cut applied) for approximately 16 Moz silver and 100 Koz gold contained. Mineralisation is conceptually suitable for underground mining.

Veins and veinlets occur within the volcanic fault and are composed of free-milling quartz associated with carbonate, manganese, and rhodonite. Only 10 km² out of the 58.7 km² licence area has been meaningfully explored.

"I am pleased to report that we have expanded our portfolio of near-mine advanced exploration projects" - said Vitaly Nesis, Group CEO of Polymetal. - "We hope to add within two years high-grade reserves within the economic transportation distance from both the Omsukchan concentrator and the Khakanja processing plant".

As а result of the issuance of consideration shares, Polymetal's share capital will comprise 423,565,285 shares. Аn application has been made to the London Stock Exchange and UKLA on the official list and consideration shares are expected to be admitted to trading on or around 14 July 2015.

^[1] The amount of shares was determined by dividing consideration by the mean average of closing price of Polymetal shares on the Main Market of the London Stock Exchange during 3 calendar month period ending two calendar days before completion.

Enquiries

Media		Investor Relations
Instinctif Partners Leonid Fink	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Elena Revenko	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Bill Hutchings Sam McLennan	[phone]	RBC Europe Limited Tristan Lovegrove Jonny Hardy	[phone]

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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