Information  X 
Enter a valid email address

Peter Hambro Mining (POG)

  Print      Mail a friend       Annual reports

Monday 05 April, 2004

Peter Hambro Mining


Peter Hambro Mining PLC
05 April 2004

                             Peter Hambro Mining PLC

   • Acquires Novogodnee Manteau, a new gold deposit in the Urals Region of
   • Signs Buryatia Exploration Joint Venture
   • Agrees US$30 million term loan facility from HVB

Novogodnee Manteau

Peter Hambro Mining announces the acquisition by its subsidiary OJSC Pokrovskiy
Rudnik ("JSCP") from OJSC "Yamalskaia Gornaia Kompania" of 90% of the issued
shares of OJSC "Yamalzoloto", which holds the Novogodnee Manteau licence.
Completion of the acquisition was conditional on obtaining Anti-Monopoly
Ministry's consent, which has recently been obtained. The consideration payable
is 150 million Roubles (approximately US$5 million).

Novogodnee Manteau is located in the Topugolskaya area, Yamalanenetsky
autonomous okrug. The licence area covers approximately 70kmP2P.

The mining licence area so far has estimated C2 reserves of approximately
418,000 ounces at an average grade of 14.7g/t, P1 resources of approximately 1.1
million ounces and P2 resources of approximately 2.0 million ounces.. The
deposit area is open in all directions.

The licence area is only 800 metres from the nearest railway and metalled road.
The nearest city is Salekhard which is 30km from the licence area. Salekhard is
the regional capital of the district and benefits from the revenue generated in
the area from local oil and gas projects. Salekhard also benefits from a highly
developed infrastructure.


Peter Hambro Mining also announces the recent establishment of a joint venture
company, OOO Region in which JSCP owns a 75% stake, for which it has an
obligation to subscribe 750,000 Roubles (approximately US$25,000) half of which
has been paid. Our partners in the joint venture are a team of Russian
geologists with a successful track record of finding development assets. Further
to this joint venture, PHM is acquiring, from its JV partners, a considerable
amount of exploration data on the area. Initial examination of this data led
PHM's Group Chief Geologist, Nicolai Vlasov, to propose the joint venture and
acquisition of the data resource. Consideration for this acquisition is expected
to be US$5million and completion is expected shortly. Following completion of
the acquisition the Group intends to assess this data and determine the most
promising areas of exploration works to be undertaken by the joint venture.

HVB Loan Facility

Peter Hambro Mining has signed a US$30 million term loan facility agreement with
Bayerische Hypo- und Vereinsbank AG ("HVB"). The facility is available for
general corporate purposes but is intended primarily for the acquisition of
Russian gold mining assets, a number of which have been offered to the Group.
PHM has drawn on this facility to fund the consideration for the above two
transactions. The facility has an interest rate of US$ LIBOR plus a margin of
4%, considerably lower than the cost of existing Russian debt.

Commenting on the acquisition, Peter Hambro, Executive Chairman of the Group

"The acquisition of Novogodnee Manteau is the first for us in the Urals region
of Russia and our first solo venture outside the Amur Region. This reflects our
strategic decision to take part in the widespread consolidation of Russian gold
mining assets concentrating on assets that can easily be brought into
production. The region is well known for its oil and gas resources and hence
benefits from a developed infrastructure which will assist our efforts.

We first became interested in Buryatia when we owned an interest in Baikal Bank,
which we subsequently sold. This acquisition is our first move into gold mining
in this region. We have great hopes for the joint venture.

The HVB loan facility is the Group's first non-Russian debt facility that we
have utilised and will assist us to finance our ongoing acquisition programme.
I am very pleased that HVB shares my confidence in Peter Hambro Mining's future


Alya Samokvalova                                    +44 (0) 20 7201 8900
Investor Relations, Peter Hambro Mining

David Simonson / Tom Randell                        +44 (0) 20 7653 6620

                      This information is provided by RNS
            The company news service from the London Stock Exchange