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Polymetal International plc (POLY)

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Tuesday 01 December, 2020

Polymetal International plc

Polymetal: New exploration JV in Taymyr

Polymetal International plc (POLY)
Polymetal: New exploration JV in Taymyr

01-Dec-2020 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


Release time

IMMEDIATE   LSE, MOEX, AIX: POLY / ADR: AUCOY

Date

1 December 2020

 

 

Polymetal International plc

New exploration JV in Taymyr

Polymetal announces an initial investment of US$ 0.5 million in exchange for a 35% stake in a joint venture with a junior holding an exploration license for the Pekinskaya area, Taimyr Peninsula, Russia (Pekinskaya JV), which adjoins the existing Taimyr JV.

"Through this new joint venture Polymetal has expanded its footprint in the highly prospective Taimyr region with the potential to discover a significant copper-gold porphyry mineralisation", said Vitaly Nesis, Group CEO of Polymetal. "We continue to be committed to further development of our exploration portfolio through partnerships with juniors in the regions of our presence".

TRANSACTION HIGHLIGHTS

  • Polymetal may acquire up to a 70% interest in the Pekinskaya JV by funding RUB 173 million in cash (approximately US$ 2.3 million) of exploration expenditures in three stages aligned with the relevant field seasons:
    • Stage 1 (completed) - an initial acquisition of 35% stake in the JV through a RUB 40 million (approx. US$ 0.5 million) cash investment in newly issued share capital.
    • Stage 2 - increase stake up to 63% ownership for further investment of RUB 85 million (approx. US$ 1.1 million) in newly issued share capital by March 2021 following the first field season results assessment.
    • Stage 3 - increase stake up to 70% ownership for further investment of RUB 48 million (approx. US$ 0.6 million) in newly issued share capital by March 2022 following the second field season results assessment.
  • Polymetal may also provide loans to the JV to fund extra exploration costs at stages 2 and 3, and finance three additional field seasons post 2022.
  • Polymetal has been granted a call option exercisable in 2023-2026 to acquire the remaining interest in the JV following JORC-compliant Mineral Resource estimate.
  • Pekinskaya exploration license covers an area of 97 sq. km. Together with the contiguous Taimyr JV they represent an area of 359 sq. km.

About Polymetal 

Polymetal International plc (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

Media

 

Investor Relations

FTI Consulting

Leonid Fink

Viktor Pomichal

+44 20 3727 1000

Polymetal

Evgeny Monakhov

Timofey Kulakov

Kirill Kuznetsov

[email protected]

+44 20 7887 1475 (UK)

 

+7 812 334 3666 (Russia)

Joint Corporate Brokers

 

Morgan Stanley & Co. International plc

Andrew Foster

Richard Brown


 

Panmure Gordon

Daniel Norman

John Prior

+44 20 7425 8000

 

 

 

 

 

 

+44 20 7886 2500

RBC Europe Limited

Marcus Jackson

Jamil Miah

+44 20 7653 4000

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.

 

 



ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
Sequence No.: 88781
EQS News ID: 1151606

 
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