Polymetal increases its interest in Tarutin to 75%

RNS Number : 5165H

Polymetal International PLC

18 August 2016

 

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	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Maryana Nesis	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Sam McLennan Richard Brown	[phone]	RBC Europe Limited Tristan Lovegrove Marcus Jackson	[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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