Polymetal To Buy 80% Stake In Saum Polymetallic Desposit
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is pleased to announce that it has acquired an 80% stake in Saum Mining Company LLC, a licence holder for the Saum polymetallic deposit (“Saum”).
Polymetal will issue 1.1 million shares in relation to the acquisition of the stake from an undisclosed Russian seller, and said the total transaction value is around USD10.7 million, suggesting the shares are being issued at USD9.73 each, about 765 pence.
Shares in Polymetal were down 3.0% at 724.50 on Monday.
The Saum licence covers an area of 34.2 kilometres squared in Russia’s Sverdlovsk region in the Ural mountains. Throughout the 1970’s, 35 drill holes were completed at this property, Polymetal said, and exploration resumed in 2013, with a total diamond drilling volume of 2,228 meters.
Polymetal said Saum is a volanogenic massive sulfide polymetallic deposit, with the main minerals being gold-bearing pyrite, chalcopyrite, and sphalerite.
The company said it is planning to prepare an ore reserves estimate in the fourth quarter of 2017, and further drilling is planned at Saum in 2017 and 2018.
“Saum furthers our strategy of accumulating resources for the potential upgrade of the Voro plant with a flotation circuit. High grade, shallow depth, and good infrastructure will enable capital-light and low-cost production from the deposit in the medium-term,” said Chief Executive Officer Vitaly Nesis in a statement.