Precious metals miner Polymetal has sold its Svetlobor platinum exploration project to a group of Russian buyers for $5.5-million in cash.
The company bought the project in 2013 for $9.7-million in stock and subsequently wrote down its carrying value to $4-million on the back of modest exploration results.
"Svetlobor lacks scale and consequently does not fit our strategy,” said CEO Vitaly Nesis.
He noted that the company retained significant exposure to platinum-group metals through the openpit Viksha project.
The transaction is expected to result in a $4.8-million accounting profit for the company and the proceeds will be used to reduce debt.
At the end of October, Polymetal sold its Kapan polymetallic mine, in Armenia, to Chaarat Holdings for $55-million.