Azerbaijan, Baku, June 9 / Trend E. Kosolapova/
Polyus Gold International Limited has entered into conditional agreements on sale of its assets in Kazakhstan and Kyrgyzstan to Altyngroup, the company reported. The total consideration payable by Altyngroup to Polyus Gold and its subsidiaries in the transaction amounts to $385 million.
In April Polyus Gold International terminated the agreement on sale of its assets in Kazakhstan, Kyrgyzstan and Romania to Altyngroup. The deal was worth $509.1 million. Polyus Gold should receive the first tranche of $259.6 million for this deal by Dec.12, 2011.
According to the new agreement, Polyus Gold and its subsidiaries agreed to sell to Altyngroup 100 percent of the shares in Kazakhaltyn (the holding company of the Group's operating subsidiaries in Kazakhstan) for a consideration of $90 million and 100 percent of the shares in Norox Mining Company Limited (the holding company of the Group's operating subsidiaries in Kyrgyzstan) for consideration of $5 million.
Moreover, Polyus Gold's subsidiary Jenington has agreed to novate to Altyngroup all of its rights and obligations under the loan agreements between Kazakhaltyn as borrower and Jenington as lender for an aggregate consideration of $290 million.
Completion of the Transaction is subject to certain conditions, including the receipt of necessary governmental consents, approvals and waivers in Kazakhstan and the receipt of confirmation from Altyngroup by 30 July 2012 that it has sufficient funding available to pay the full amount of the consideration under the Agreement. Pursuant to the Agreement the Transaction may be terminated, among other things, if the conditions to it are not satisfied on or before 30 September 2012 (unless the parties agree otherwise) or if the confirmation of availability of funding is not provided to by 30 July 2012.
Polyus Gold International Limited is an international company, the leading gold producer in Russia and Kazakhstan, one of the world's largest gold producers. Headquartered in London, Polyus Gold's operating mines and development/exploration projects are located in 5 major gold mining regions of Russia - the Krasnoyarsk Territory, the Irkutsk, Magadan, Amur Regions, the Republic of Sakha (Yakutia), as well as in the Republic of Kazakhstan, Romania and Kyrgyzstan.
Polyus Gold produced 1.497 million ounces (46.56 tons) of gold in 2011 or 8 percent more than in 2010.