Azerbaijan, Baku, Dec. 19 / Trend E. Kosolapova/
Polyus Gold International Limited has entered a new agreement to sell its assets in Kazakhstan and Kyrgyzstan, the company reported.
"Further to previous announcements regarding the intention of Polyus Gold International Limited to dispose its assets in Kazakhstan and Kyrgyzstan, in view of the previously announced transaction not proceeding, the Company has now entered into new agreements for the sale of its assets in Kazakhstan and Kyrgyzstan to a consortium consisting of Institute Project B.V., Financial Services B.V. and Folkstand Consortium Limited," the company said.
According to the Polyus Gold, the company and its wholly owned subsidiary Romanshorn LC AG have agreed to sell 100 percent of the shares in Kazakhaltyn to Institute Project B.V. for a cash consideration of $10 million, payable in full at completion.
The Polyus Gold has also agreed to sell 100 percent of shares in Norox Mining Company Limited to Folkstand Consortium Limited for a cash consideration of $1 million, payable in full at completion.
Completion of the transactions is subject to certain conditions, including the receipt of all necessary governmental consents, approvals and waivers in Kazakhstan. The transaction agreements may be terminated if, among other things, the conditions to completion are not satisfied on or before 1 April 2013 (or such later date as the parties may agree).
The transaction is not expected to have any material effect on the ongoing operations or profitability of the company. The net proceeds will be utilized for general corporate purposes.
Kazakhaltyn is the holding company of the Polyus Gold's operating subsidiaries in Kazakhstan. Norox Mining Company Limited is the holding company of the company's operating subsidiaries in Kyrgyzstan. These operating subsidiaries mainly comprise of the following mining operations in Northern and Eastern Kazakhstan: the Aksu mine (which consists of the Aksu mine and adjacent Quartzite Hills deposits), the Bestobe mine, the Zholymbet mine and the Akzhal mine. In addition, these assets include development properties in Northern, Eastern and Central Kazakhstan as well as exploration projects at Yuzhny Karaultube and Kaskabulak. The value attributable to the gross assets being sold was $405 million as at 30 June 2012 and the segment profits attributable to these assets for the 6 months ended 30 June 2012 were $23 million, in each case in accordance with the Company's interim financial report for the six months ended 30 June 2012.
