Petropavlovsk: $20m Russian gold assets sales

Russian gold miner Petropavlovsk is selling its interests in 2 non-core gold exploration companies for $US20M.

The deal includes the Ilyinskoye company, which holds the 1.2Moz JORC probable gold reserves/1.3Moz resources Visokoe deposit in Russia and its 49% of Verkhnetisskaya Ore Mining and its 2 gold exploration licenses, also in Russia. Both are being bought by the Yuzhuralzoloto Group, one of Russia’s largest gold miners, both in terms of production and reserves/resources.

The deal will cost Yuzhuralzoloto $7.5M cash by May 15 2016 and $9M for the assignment of a loan for Ilyinskoye, and $500,000 cash and $3M for the assignment of a loan, for Verkhnetisskaya.

Source: Mining business