Polyus signs agreements to earn 100% interest in Sukhoi Log licence


Russia-based JSC Polyus Krasnoyarsk has signed additional option agreements with RT Business Development to earn 100% interest of SL Gold and the Sukhoi Log deposit.

Under the current agreement, Polyus Krasnoyarsk will acquire an additional 25.1% interest in the Sukhoi Log deposit licence for $145.9m.

Last December, the company signed five-year cash option agreements with RT to acquire a 23.9% stake in SL Gold for $139m. It exercised the first option in May to increasing its stake in SL Gold to 54.6%.

In accordance to the latest agreement, the company will make the payment in shares over the next five years in five instalments. Its existing treasury shares will be used to make the first instalment, which is the equivalent of a 3.8% stake in SL Gold for $21.9m.

"Under the current agreement, Polyus Krasnoyarsk will acquire an additional 25.1% interest in the Sukhoi Log deposit licence for $145.9m."

The remaining four instalments will be completed between 2019 and 2022.

RT is a wholly owned subsidiary of Russian company Rostec, while Polyus Krasnoyarsk is a subsidiary of gold producer Polyus PJSC.

The Sukhoi Log deposit is said to contain gold reserves of 930.3Mt of ore, grading 2.1g/t gold for 62.8Moz of contained gold.


Image: Sukhoi Log deposit. Photo: courtesy of Rostec.