Polymetal International has agreed to increase its stake in the Veduga gold deposit to 74.3% through the acquisition of a 31.7% stake in Amikan.


Image: Polymetal increases stake in Veduga gold project. Photo: courtesy of yodiyim/FreeDigitalPhotos.net.

The total consideration will comprise $19.7m, payable in Polymetal shares.

Polymetal Group CEO Vitaly Nesis said: “Obtaining a controlling stake in Veduga will allow us to explore multiple strategic options for this large and high-grade asset, including potentially selling the asset as it remains non-core for Polymetal. In the meantime, Polymetal will continue to process Veduga’s high-grade ore at our existing processing facilities.”


The total consideration to acquire a 31.7% stake in Veduga comprised US$ 19.7 million paid to 2 shareholders of Amikan – SIBPROJECT LLC and a private investor Malakh Y. by issuing 2,456,049 new ordinary shares of the Company, representing 0.54% of Polymetal’s total increased share capital. The number of issued shares has been determined by dividing US$ 19.7 million by US$ 8.036, the spot price of ordinary shares of the Company on the Main Market of the London Stock Exchange as at market close on 10 October 2018 in US dollars.

An application has been made to the London Stock Exchange and UKLA on the Official List and the Consideration Shares are expected to be admitted to trading on the London Stock Exchange on 17 October 2018. Following admission, the total issued share capital of the Company will comprise 455,881,730 ordinary shares of no par value, each carrying one vote.

The value of Amikan’s gross assets subject to the transaction (on a 100% share basis) is $66.8m with an attributable reported pre-tax loss of US$ 17.3 million based on FY2017 financial accounts.

Source: Company Press Release