The extraordinary general shareholders meeting of OJSC “South-Verkhoyansk Mining Company” (SVMC) held by means of absentee ballots took place on November 18th 2005. The EGM passed a number of key decisions to implement the investment and development plan on Nezhdaninskoye gold deposit in Yakutia.

The EGM passed the decision to increase the company’s charter capital by 25 million roubles through the private offering of the new share issue. 125 000 ordinary shares and 125 000 preference shares are to be issued with a nominal value of 100 roubles each. The offering price of one ordinary share will be 11 400 roubles. The offering price of one SVMC preference share will be 100 roubles.

The EGM has approved an 800 million roubles call loan to SVMC from Polyus Gold Mining Company. The EGM also voted to dismiss SVMC’s General Director Mikhail Bruk, and to elect Ivan Bakulyev as new General Director of the company. The shareholders meeting also adopted a new Charter of OJSC “SVMC”.

Commenting on the event Polyus CEO Evgueni Ivanov said: “The decisions passed by the EGM provide necessary conditions to launch further exploration and development of Nezhdaninskoye gold deposit”. Mr. Ivanov also noted: “When Polyus acquired its new assets in Yakutia, the company took on certain responsibility before its shareholders and the Government of Yakutia. Polyus must live up to them. Participating in SVMC’s additional share issue and providing it with a loan are our first moves on this way. It will commence further exploration of Nezhdaninskoye and keep the site’s infrastructure working through the winter”.