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Drilling Reports

Polymetal updates on Nezhda project

17 July 2017 07:07

Polymetal announced an initial resource estimate for Nezhda and entered a legally binding agreement for the increase of its stake in the project to 24.7% with an option to acquire the remaining 75.3%.

Polymetal International, together with its subsidiaries agreed to acquire an additional 7% in the joint venture Nezhdaninskoye gold deposit (Nezhda) from its partner, Ivan Kulakov. Simultaneously, Polymetal acquired an option to buy out the remaining 75.3% in Nezhda.

A resource estimate for Nezhda was prepared in accordance with the JORC Code (2012) and was audited by CSA Global. The resource inventory comprised 71 Mt of mineralized material containing 11 Moz of gold equivalent (GE) at an average grade of 4.8 g/t GE.

Based on the highly encouraging resource estimate at Nezhda, Polymetal decided to increase its share in the Nezhda JV and was able to renegotiate the key terms and conditions of the previous JV agreement. As such, the existing Nezhda JV agreement and the related earn-in arrangement were terminated with immediate effect.

Under the new shareholder agreement, Polymetal will acquire an additional 7% share in the JV for a cash consideration of $8 million. As a result, Polymetal's share in Nezhda will increase to 24.7%. Mr. Kulakov's investment vehicle, Pallavicino Holdings Ltd, will hold 75.3%.

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