Polymetal exchanges Russian property for one in Kazakhstan
Polymetal International has completed the non-cash exchange of its Tarutin property in Russia for 85% of the East Tarutin property in Kazakhstan, it said on Wednesday - a plan which it had initially announced on 16 April.
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The FTSE 250 company said that, following the receipt of all regulatory approvals, it received 85% of LLP Tarutinskoye - the subsoil contract holder for the copper-gold East Tarutin deposit located in Kazakhstan.
In return, Polymetal transferred to the Russian Copper Company 100% of Vostochny Basis LLC, the license holder for the copper-gold Tarutin deposit located in the Russian Federation.
The board said the East Tarutin licence area, totalling 66.4 square kilometres, was situated in the Karabalyk municipal district of the Kostanay region and formed the eastern extension of the mineralised trend stretching across the border between Russia and Kazakhstan.
It explained that the deposit was of the copper-gold skarn type, with disseminated mineralisation.
The infrastructure in the region was described as “well developed”, with easy access to the electricity grid, the railway and paved highways.
Polymetal said the transaction was “synergistic”, due to the improved logistical fit of the property with the Varvara processing plant.
As a result, ore haulage distance is reduced to 110 kilometres, compared to 150 kilometres for Tarutin on the other side of the border.
Polymetal planned to resume exploration at East Tarutin and complete a JORC-compliant mineral resource estimate by the end of 2019.
“East Tarutin is a natural fit for Varvara and will simplify operations by avoiding complications of cross-border ore shipments,” said Polymetal group chief executive officer Vitaly Nesis.