Polymetal International plc (LON:POLY) has announced a joint venture with Rosgeology JSC to carry out exploration in the Republic of Bashkortostan, Russia.
The joint venture will be focused on exploration at the Novopetrovskaya property in the south of the Republic of Bashkortostan to discover pyritic copper-zinc mineralization.
- Under the arrangement, Polymetal has acquired a 75% stake in the wholly-owned subsidiary of Rosgeo, which owns the license for the Novopetrovskaya area, for a total cash consideration of RUB 490 million (approximately US$ 7 million).
- Polymetal has also been granted a 7-year call option to acquire the remaining 25% interest following the Russian statutory reserve estimate (GKZ).
- Polymetal, through shareholder loans, will provide exploration funding sufficient to complete a GKZ reserve estimate. 100 km of drill holes is expected to be completed resulting in JORC-compliant Mineral Resource estimate in 2023.
Rosgeo is the largest Russian geological exploration holding. The company provides a full range of services related to geological exploration works and operates in 40 Russian regions and globally. Rosgeo has discovered more than 1,000 mineral deposits, including the largest Russian gold deposit, Sukhoi Log.
Rosgeo carried out the exploration campaign at Novopetrovskaya in 2015-2017 on the area of 28 km2, which identified significant copper, zinc as well as gold and silver potential resources.
“We continue to leverage our exploration strategy through joint ventures with dedicated and experienced professionals. Rosgeo is a recognized Russian leader in greenfield exploration, whose previous prospecting works at Novopetrovskaya proved its further exploration potential. This partnership reinforces our presence in the promising Urals region”, said Vitaly Nesis, Group CEO of Polymetal International.