Polymetal is in talks to acquire Armenian Kapan mine
29.10.2018,
16:44
Mining company Polymetal International PLC last Friday confirmed it was in talks to sell its Armenian Kapan mine to Chaarat Gold Holdings Ltd. for $75 million, Russian daily Kommersant reported.
EREVAN, October 29 /ARKA/. Mining company Polymetal International PLC last Friday confirmed it was in talks to sell its Armenian Kapan mine to Chaarat Gold Holdings Ltd. for $75 million, Russian daily Kommersant reported
At the end of August, Chaarat said it had signed a non-binding term sheet to acquire a polymetalic asset in the Commonwealth of Independent States for USD75 million in cash but did not name the specific asset. This has now been confirmed as Kapan Mining & Processing Co CJSC.
The Kapan mine was acquired by Polymetal in 2016 from the Canadian company Dundee Precious Metals Inc.for $25 million, making it its first operating asset in Armenia. The asset comprises a fully mechanized underground mine with a current capacity of approximately 400 kilo tons per annum (ktpa), the Lichkvaz deposit, a conventional 750 ktpa flotation concentrator and various infrastructure facilities.
The operation produces gold-copper-silver and zinc concentrates sold to international markets and is expected to contribute more than 100 Koz of GE per year once it is fully ramped up.
The mine is located in the town of Kapan (population of 40,000) in the south-eastern corner of Armenia, approximately 320 km south of the capital city of Yerevan. The area surrounding the operation hosts a number of other prospective deposits, including the 100%-owned high-grade Lichkvaz gold deposit located approximately 70 km from Kapan and 380 km from Yerevan.
Chaarat, founded in 2002, does not have mining assets yet. The company owns the same-name deposit in Kyrgyzstan with 6.4 million ounces of gold resources (divided into two projects). -0-
At the end of August, Chaarat said it had signed a non-binding term sheet to acquire a polymetalic asset in the Commonwealth of Independent States for USD75 million in cash but did not name the specific asset. This has now been confirmed as Kapan Mining & Processing Co CJSC.
The Kapan mine was acquired by Polymetal in 2016 from the Canadian company Dundee Precious Metals Inc.for $25 million, making it its first operating asset in Armenia. The asset comprises a fully mechanized underground mine with a current capacity of approximately 400 kilo tons per annum (ktpa), the Lichkvaz deposit, a conventional 750 ktpa flotation concentrator and various infrastructure facilities.
The operation produces gold-copper-silver and zinc concentrates sold to international markets and is expected to contribute more than 100 Koz of GE per year once it is fully ramped up.
The mine is located in the town of Kapan (population of 40,000) in the south-eastern corner of Armenia, approximately 320 km south of the capital city of Yerevan. The area surrounding the operation hosts a number of other prospective deposits, including the 100%-owned high-grade Lichkvaz gold deposit located approximately 70 km from Kapan and 380 km from Yerevan.
Chaarat, founded in 2002, does not have mining assets yet. The company owns the same-name deposit in Kyrgyzstan with 6.4 million ounces of gold resources (divided into two projects). -0-
