Polymetal International plc

Polymetal completes the sale of Kapan

Polymetal International plc completes the previously announced sale of Kapan to Chaarat Gold Holdings Limited (AIM: CGH) (together with its subsidiaries - "Chaarat") for a total consideration of US$ 55 million (the "Transaction"). 

"Sale of Kapan is yet another step to concentrate and upgrade our asset portfolio", said Vitaly Nesis, Group CEO of Polymetal. "On behalf of Polymetal, I wish the employees of Kapan and its new owners success going forward".

Following satisfaction of all outstanding conditions to closing and requisite regulatory approvals, the Transaction was completed on 30 January 2019.

The total consideration payable for Kapan is US$ 55 million, subject to post-closing working capital and other customary adjustments. Of the total consideration, US$ 10 million was settled in Chaarat's 2021 Convertible Notes. The remaining US$ 45 million is payable in cash, of which US$ 5 million was received by Polymetal in November 2018 as an advance payment and US$ 40 million will be received within 5 working days following the execution of certain settlement procedures associated with Chaarat's syndicated acquisition financing facility. The payment is secured by a pledge of Kapan's shares in favour of Polymetal, which will be released upon the receipt of remaining cash proceeds.

Simultaneously with the completion of the sale, Polymetal has agreed with Dundee Precious Metals ("DPM"), the previous owners of the asset, to terminate the royalty owed to DPM via a buyout for a cash consideration of US$ 5.5 million, fully eliminating the Company's exposure to the asset.

The transaction (including the royalty buyout) is not expected to result in any material gain or loss.

Scotiabank Europe plc acted as financial advisor to Polymetal.

About Polymetal  

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-20 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

FORWARD-LOOKING STATEMENTS

THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, "FORWARD-LOOKING STATEMENTS". THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS "TARGETS", "BELIEVES", "EXPECTS", "AIMS", "INTENDS", "WILL", "MAY", "ANTICIPATES", "WOULD", "COULD" OR "SHOULD" OR SIMILAR EXPRESSIONS OR, IN EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED