London-listed Petropavlovsk has denied that it is in merger discussions with its major shareholder Uzhuralzoloto Group of Companies (UGC).
This follows after a major UK news agency reported that the companies are studying a potential merger in a deal that would “catapult the pair into the upper echelons of the gold mining industry”.
The privately-owned Russian gold miner UGC earlier this year bought a large stake in Petropavlovsk, which owns and operates four mines in Russia’s fast east region.