Completion of the acquisition of the Komarovskoye

RNS Number : 9024F

Polymetal International PLC

02 August 2016

 

Release time	IMMEDIATE
Date	2 August 2016

Polymetal International plc

Completion of the acquisition of the Komarovskoye Gold Deposit in Kazakhstan

Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group")  is pleased to announce the completion of the acquisition of Orion Minerals LLP ("Orion"), the holding company for the Komarovskoye Gold Deposit ("Komarovskoye") in the Republic of Kazakhstan, from Kazzinc LTD, a subsidiary of Glencore plc.

The acquisition of Komarovskoye was completed on 1 August 2016, following receipt of all required regulatory approvals.

The total consideration for Komarovskoye is US$ 100 million payable in cash. In addition, a deferred consideration contingent upon future production levels and gold price performance, will be paid to Kazzinc LTD. The deferred consideration, capped at US$ 80¹ million, shall be calculated on a quarterly basis, and is payable if the price of gold exceeds US$ 1,250 per ounce. More details regarding the transaction can be found in the Company's press release dated April 4, 2016.

According to the JORC Code (2012), Total Probable Ore Reserves² at the Komarovskoye deposit are estimated at 14.2 Mt at an average grade of 2.0 g/t Au with 0.9 Moz of contained gold.

Mineral Resources² (additional to Ore Reserves) are estimated at 9.8 Mt of ore at an average grade of 2.2 g/t Au containing 0.7 Moz of gold.

 "Komarovskoye is an excellent addition to our operating portfolio. We expect further material reserve additions once additional exploration is carried out. Incremental production is planned to start in Q4 of 2016." said Vitaly Nesis, Group CEO of Polymetal.

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Notes:

¹ Deffered consideration = (US$35 * ((Average Quarterly Gold Price - 1,250)/100)) * Contained Gold in Ore Mined per Relevant Quarter (in troy ounces) 

² Ore reserve and mineral resource estimates prepared by Polymetal Engineering as at 01.07.2016 using US$1,100/oz gold price.

Media		Investor Relations
FTI Consulting Leonid Fink Jenny Payne	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Maryana Nesis	[phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Sam McLennan Richard Brown	[phone]	RBC Europe Limited Tristan Lovegrove Marcus Jackson	[phone]

Enquiries

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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