RNS Number : 2979A
06 October 2009
06 October 2009
Petropavlovsk participation with Leader fund management company
in Russian gold fund
Petropavlovsk PLC ('Petropavlovsk'), Russia's third largest gold producing company, notes a report in the Russian media that Leader, the largest asset management company in Russia, whose major client is 'Gazfund' Pension Fund (the Gazprom pension fund), announces its intention to create a gold mining fund (the' Fund').
Petropavlovsk is pleased to confirm that it has signed a Memorandum of Understanding ('MoU') with Leader regarding the creation of a Russian closed unit investment fund. The MoU outlines the general terms on which Leader would invest its client's funds and Petropavlovsk would contribute its own capital and provide in-house mining expertise in the acquisition and development of Russian gold mining businesses.
A number of such gold mining businesses have already been identified and Leader and Petropavlovsk are working towards definitive documentation to complete the deal. It is envisaged that the initial investment in the Fund is likely to be in the order of $100 million.
Commenting on the announcement, Peter Hambro, Chairman of Petropavlovsk said:
'The association with Leader and Gazfund brings to our company opportunities in our industry that we would otherwise not have had and I am very pleased by this. As the same time, the agreement makes it clear that Petropavlovsk's ordinary business is unaffected by the formation of the fund.'
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