Swedish Kopy Goldfields and OAO Vysochaishy (GV Gold) have agreed to invest USD 1,960,000 into the Krasny common project in the Irkutsk region, according to the statement of the Swedish company. The Company said that the exploration and development program of the Krasny project provides MUSD 4.5, and the major portion was financed by MUSD 6 invested earlier by Vysochaishy. In order to finance the program in full, the parties have agreed to invest according to ownership interests, i.e. 51% from the Vysochaishy, and 49% from Kopy. Additional financing will be made in two installments, 30% and 70% of the total, respectively. The companies have already made the first payment in the amount of 30%. Mikhail Damrin, CEO of Kopy Goldfields, said the ruble devaluation during recent years against euro and dollar has significantly lowered operating costs in Russia and made the country one of the lowest cost gold producers among countries. As previously reported, the beginning of production on the project is tentatively scheduled for 2018. Micon International Co has estimated resources under JORC of the Krasny gold project at 955 thousand ounces (29.7 tons).
OOO Vysochaishy (GV Gold) owns 51% of the project. Current assets of Vysochaishy are located only 70 km from the Krasny field of the Bodaibo deposit ore-placer site, and the company looks forward to the opportunity to accelerate the involvement of new reserves into economic circulation.
Source: Uncommercial joint ownership "Trans-regional Association of precious metals producers"