Petropavlovsk Plc. (POG.L) announced the execution of a Share Purchase Agreement dated 2 July 2013 relating to the transfer of 21% of the issued shares in closed joint-stock company JSC Verkhnetisskaya Ore Mining Company to OJSC Krasnojarskaya Gorno-Geologicheskaya Company. The total consideration for the sale is a rouble equivalent of US$172,756 which will be applied to ongoing working capital requirements.
Verkhnetisskaya holds two licences to explore and extract hard-rock gold from the Verkhnetisskaya and Troeusovskaya deposits in Krasnoyarsk region of Russia. Both of these deposits are at the exploration stage of development; neither are producing or are included in the Group's production plans.
The value of the gross assets which are the subject of this transaction is US$0.2 million and a loss of US$10.4 million was attributable to them, as consolidated in the Group's consolidated financial statements for the year ended 31 December 2012.
The company said that the transfer of title will take place within five business days from the date of the Share Purchase Agreement. The prior approval of the Federal Antimonopoly Service of Russia has already been obtained for the transaction. Following completion of the transaction, the Group will remain a 49% shareholder in Verkhnetisskaya. Upon completion of the sale Verhnetisskaya will cease to be a subsidiary of the Group.
by RTT Staff Writer
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