Polymetal International plc announce that it has acquired a 24.99%stake in the Svetlobor platinum exploration project from Ubergot Investments Limited in exchange for 130,053 new ordinary shares in Polymetal.Simultaneously,CJSC VTB Capital has acquired the remaining 75.01%stake in the project from Ubergot in exchange for 390,369 new ordinary shares in Polymetal and has agreed to sell this stake to Polymetal for USD 6.9 million(plus interest)following receipt of regulatory approval.
Polymetal and VTB have together acquired 100%of the shares in CJSC Nevyansk Group a Russian legal entity whose wholly owned subsidiary holds a mining and exploration licence for the Svetlobor area valid until 30 November 2031,from Ubergot,a Cypriot entity controlled by several Russian individuals.
Polymetal has purchased a 24.99%stake in NG from Ubergot in exchange for 130,053 new Polymetal ordinary shares.VTB has purchased a 75.01%stake in NG from Ubergot in exchange for 390,369 new Polymetal ordinary shares,which will be subscribed for by a subsidiary of VTB at a total price of US$6.9 million in cash.Polymetal has agreed to acquire this 75.01%stake in NG from VTB for a cash price of US$6.9 million,plus interest from the date of VTB's acquisition to the date of Polymetal's acquisition at the rate of 7.25%p.a.
Based on the closing price of Polymetal's ordinary shares on 17 December 2012(GBP 11.81 per share),the total transaction value is approximately GBP 6.1 million(plus interest payable to VTB),or USD 10.0 million at an exchange rate of GBP 1.00=USD 1.6204.The new ordinary shares to be issued to Ubergot and VTB's subsidiary together represent approximately 0.14%of Polymetal's increased ordinary share capital.
Under Russian law,the PGM(platinum group metals)deposits and occurrences are subsoil areas of federal importance and are deemed strategic for Russian national defence and state security.Therefore,the acquisition by Polymetal of more than a 25%interest in the Svetlobor project is subject to approval by the Government Commission on Monitoring of Foreign Investments.Polymetal intends to apply for such approval in the very near future.
Source - Polymetal International