Transaction on Nezhda announced by Polyus

RNS Number : 0425A

Polymetal International PLC

21 March 2017

 

Release time	IMMEDIATE
Date	21 March 2017

Polymetal International plc

Statement regarding transaction on Nezhda announced by Polyus

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") notes the transaction announced today by PJSC Polyus ("Polyus").

In December 2015, Polymetal entered into a joint venture with Polyus for the development of the Nezhdaninskoye gold property ("Nezhda"). Polymetal currently owns an 18% stake in Nezhda and has the right to earn in up to a total of 50% through investing an additional US$ 69 million over the next four years by entering into Stage 2 of the joint venture arrangement which was scheduled for April 2017.

Polymetal notes the announcement today by Polyus that they have signed an agreement to sell their entire 82% stake in Nezhda to a company beneficially controlled by Mr. Ivan Kulakov, a former managing director of Highland Gold Mining. As a result, Mr. Kulakov has become the counterparty to the joint venture, replacing Polyus, while the key terms of the joint venture operation and the earn-in mechanism for Polymetal remain unchanged. Polymetal retains an 18% stake in the project and continues to be in charge of operational activities at Nezhda.

In light of the ownership change, the parties have agreed that Polymetal's option to enter into Stage 2 will be extended for a further three months, until July 2017. Polymetal has also initiated discussions with Mr. Kulakov with regards to the joint development of Nezhda. In the meantime, Polymetal will continue exploration and technical works at Nezhda in accordance with the project schedule.

"We welcome Mr. Kulakov as our new joint venture partner for Nezhda, and we continue to view our investment in this asset as a potential valuable addition to Polymetal's longer-term growth pipeline", 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 Panmure Gordon Adam James Tom Salvesen	[phone] [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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