Polymetal Buys 35% Stake In New Exploration JV In Taymyr; May Buy Up To 70% By 2022

Gold and silver producer Polymetal International plc (POLY.L) announced Tuesday an initial investment of $0.5 million in exchange for a 35 percent stake in a joint venture with a junior holding an exploration license for the Pekinskaya area, Taimyr Peninsula, Russia or Pekinskaya JV, which adjoins the existing Taimyr JV.

The company said it may acquire up to a 70 percent interest in the Pekinskaya JV by funding RUB 173 million in cash or around $ 2.3 million of exploration expenditures in three stages. The first stage is not completed with the purchase of 35 percent stake.

Stage 2 would increase stake up to 63 percent ownership for further investment of $ 1.1 million in newly issued share capital by March 2021 following the first field season results assessment. Stage 3 would increase stake up to 70 percent ownership by March 2022.

Polymetal may also provide loans to the JV to fund extra exploration costs at stages 2 and 3, and finance three additional field seasons post 2022.

The company has has been granted a call option exercisable in 2023-2026 to acquire the remaining interest in the JV following JORC-compliant Mineral Resource estimate.

Pekinskaya exploration license covers an area of 97 sq. km. Together with the contiguous Taimyr JV they represent an area of 359 sq. km.

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