PJSC Polyus (LSE, MOEX: PLZL) (Polyus, the Company) acquires a 74.99% participation interest in two companies owned by JSC Rosgeologia for a total consideration of RUB 200 mln (approximately $2.7 mln). These companies hold exploration licenses for the Marokskoye and Petropavlovskoye ore fields located in the Krasnoyarsk region’s Severo-Yeniseysk and Motyginsky districts, respectively.
Both sites are situated in areas with developed energy and road infrastructure. Covering 13 km², the Petropavlovskaya license area is located ca. 170 km from Polyus’ Olimpiada mine, while the Marokskaya license area covering 15 km² is located ca. 70 km from Olimpiada.
Polyus also holds a call option allowing it to buy out the remaining participation interests in both companies from Rosgeologia. Exercising the call option is conditional upon the certification of reserves of the prospective areas with state authorities following the completion of the exploration campaign.
Polyus is the world’s fourth-largest gold mining company by production volumes and one of three gold miners with the largest attributable gold reserves. The company demonstrates the lowest production costs among major global gold producers.
The company’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).
Rosgeo is a Russian state-owned multidisciplinary geological holding company, which provides a full range of geological exploration services from regional surveys to stratigraphic drilling and subsoil monitoring. The holding company has unique expertise, including in such areas as marine geology and offshore operations. The holding company’s enterprises have discovered more than 1,000 fields and deposits, including large hydrocarbon and mineral deposits.
Investor and Media contact
Victor Drozdov, Director Investor Relations
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Forward looking statement
This announcement may contain forward-looking statements concerning Polyus and/or Polyus group. Generally, the words will, may, should, could, would, can, continue, opportunity, believes, expects, intends, anticipates, estimates or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.