# Polymetal International sells North Kaluga property

- Link: https://www.directorstalkinterviews.com/polymetal-international-sells-north-kaluga-property/412820222
- Published: 2020-05-11T07:24:20+01:00
- Author: Amilia Stone

**Polymetal International plc **(LON:POLY) has today announced that it has agreed
to sell North Kaluga property for US$ 13.5 million in cash and debt assumption plus
royalty, which together represents a total transaction value of approximately US
$ 27 million.

Polymetal has entered into a legally binding agreement to sell North Kaluga to North
Kaluga Mining Limited. The transaction consideration consists of a US$ 10.7 million
fixed upfront cash payment, 5% NSR and 50% royalty on excess revenue. Excess revenue
is defined as actual revenue less base revenue, where the latter is potential revenue
calculated based on actual grades and the following metal prices: Cu = US$ 5,500/
t, Zn = US$ 2,310/t, Au = US$ 1,650/oz, Ag = US$ 18.7/oz. The fair value of the 
royalties is estimated at US$ 13.5 million as of the date of the agreement. Both
NSR and the excess revenue royalty are capped at US$ 300 million. The new owner 
will also repay all debt owed by the North Kaluga’s license holder to Polymetal 
as at transaction completion date (US$ 2.8 million as of the date of the agreement).

**ABOUT NORTH KALUGA**

North Kaluga is a polymetallic deposit located in the Sverdlovsk region of Russia.
The property’s mineral resources comprise copper, gold, zinc and silver, with most
of the value attributable to copper and gold.

JORC-compliant reserves for underground mining stand at 212 Koz of GE at 12.9 g/
t as at 01.06.2018. The asset was marked as non-core due to its small size, short
life-of-mine and lack of spare capacity at the future flotation circuit at Voro.

> “We continue to advance our non-core asset disposals. The North Kaluga deal brings
> us some cash and retains exposure to commodity prices”, **said Vitaly Nesis, Group
> CEO of Polymetal International.**

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