Armenia, Metals and mining
Lydian Armenia, engaged in the development of Amulsar deposit in Jermuk, will receive the first bar of gold in March 2018, CEO of Lydian International H.Stevenson stated at the meeting with the Min
Lydian Armenia (subsidiary of British-Canadian Lydian International Ltd) and local Ameriabank concluded the secured credit agreement for $24 million, the funds of which will be invested into the Am
Kolmar, the Fund for Development of the Far East and State Transport Leasing Company (GTLK) have signed an agreement on the construction of infrastructure facilities for the specialized marine term
Interview with Vitaliy Nesis, the chief of Polymetal Int
Q. : What is Polymetal Int going to perform for optimization of the work of Kapansky GOK purchased recently? How will you execute additional loading of the enterprise with raw materials? What indices are you going to achieve?
A. : Nowadays the processing capacities of Kapansky GOK are loaded by less than one half.
Polymetal continues its expansion in Armenia: the company is going to buy the Kapan gold ore deposit with working GOK, on the basis of which it plans to create a hub for processing, for $50 million in cash and shares. For a while, the asset is unprofitable, and Polymetal will have to improve the productivity at the Kapan deposit and to reduce the costs. Other Russian miners didn’t pay much attention to Armenia, but the country virtually has no large explored deposits, except the Kapan one.
Polymetal is going to buy the active asset Kapan in Armenia – a deposit with resources of 2.6 million gold equivalent ounces (1.4 million ounces of gold, 24 million ounces of silver and 80 tons of copper and 270 thousand tons of zinc, the average gold content is 5 grams per ton), processing plant and infrastructure from Canadian company Dundee Precious Metals Inc.. According to the company, Polymetal will purchase 100% of the Armenian Dundee Precious Metals Kapan, paying $15 million with its new shares (approximately 0.04% of the total amount is in circulation) and $10 million in cash. Polymetal also will pay Dundee annually 2% of royalty on the Kapan project, the total payout is limited with $25 million. The closing of the transaction requires the approval of Dundee creditors (European and Canadian banks), in which shares in assets, including Kapan (the size of the package is not disclosed) are pledged on loans for $32.5 million and regulators. The deal is expected to be closed no later than on June 30.
Polymetal International plc announces of the growth of its stake in the Lichkvaz deposit in Armenia up to 100%.
Polymetal has purchased the additional 75% in the company’s stake that holds the Lichkvaz deposit in Armenia as a result of which the stake of Polymetal in the asset rose from 25% to 100%. The purchase was held for 1,084,853 of shares for $9.7 mln (0.26% of the registered capital).
The decision to increase the stake up to 100% was made on the basis of the positive results of exploratory drilling which held during the season 2015.
The drilling works are over. In total 15,800 m were drilled at 70 geological exploration wells, the results of analytical studies of samples of 20 exploratory wells (25% of the total number of samples) were made. By the first data, 9 balance ore intersections were found out with the average contents of 6.4 g/t of gold equivalent per average true width of 4.5 m.
In Q2 2016 Polymetal plans to fully work out the results of geological exploration works held in 2015 and make a report with the assessment of mineral resources under JORC.
Russian mining company Polymetal International plc continues to conduct exploration work at the Lichkvaz gold mine in Armenia. According to the press service of the company the estimate of reserves is not yet made, and therefore, the decision to increase the share in the company to 50% has not been made yet.
Note that in April 2015 Polymetal, acquiring 25% share in the company that owns the license for exploration at the Lichkvaz field for 429,260 of its own shares in the amount of 3.5 million dollars, has undertaken the exploration and technology research financing.
In the six months of 2015, Armenia increased its exports of copper ore by 58% as compared with the same period in 2014 (against the growth by 6.7% in 2014), molybdenum ore - by 28.8% (against the growth by 15.4% in 2014), and at the same time slightly increased the export of zinc ore by 8.9% (against the growth by 20.1% in 2014).
Kazakhstan works out the issue of creating electro-metallurgical enterprise, specialization of which will be production of rolled metal from high-quality and alloy steels. The purpose of the project is to provide the engineering industry with rolled metal products, manufactured in the country.
Canadian McEwen Mining Inc has received $7.4 million of compensation from the insurance company for the gold that was stolen by gunmen from the Mexican El Gallo field in April, the company reports.