Polymetal purchases the Komarovsky gold deposit in Kazakhstan
The seller is the affiliate of Glencore – Kazzinc.
The resources of the deposit under JORC as of the end of 2015 are assessed at 1.4 mln ounces. Polymetal plans to assess the ore reserves of the Komarovsky deposit under JORC until the end of 2016.
Polymetal said that it would pay for the holder of the license $100 mln – Orion Minerals LLP - plus a delayed part in the form of royalty. Royalty will be paid on the condition if the gold price exceeds $1,250/ounce, but in total it will make up not more than $80 mln. The formula of calculation is the following: the higher the gold price after the exceeding the limit is, the higher the payment will be, CEO V. Nesis said. Royalty is to be paid within the period of the license validity: the payments are connected with the volume of production and gold price.
Polymetal says that the deal will be paid on the account of its own funds and available credit lines. Polymetal says that the net debt/EBITDA ratio after the purchase will not significantly change compared with the beginning of the year: the debt was 1.97 EBITDA.