JOHANNESBURG (miningweekly.com) – Gold miner Polymetal has reached an agreement with the Russian Copper Company in which it would exchange its Tarutin property, in Russia, for the East Tarutin property, in Kazakhstan.
The asset-swap deal would give Polymetal an 85% stake in the East Tarutin property, which CEO Vitaly Nesis said represented a better fit for the company in terms of logistics and potential size of reserve.
In exchange, Polymetal would transfer 100% of Vostochny Basis, the licence holder of the copper/gold Tarutin deposit.
"This asset swap simplifies operational management of the Varvara hub and avoids the complications of cross-border ore shipment, while preserving significant exploration optionality," Nesis added.
He further noted that the transaction was an asset swap and did not entail any additional payments or deferred considerations.
Meanwhile, Polymetal also reported that it had completed the acquisition of a 45% stake in the Prognoz silver deposit, in Russia, for $72-million.
As a result of the transaction, first announced in February, Polymetals now holds a 50% interest in Prognoz.
The total consideration for the 45% stake in Prognoz was paid through the issue of 6.307-million new ordinary shares.