Gold mining companies Polyus Gold and Polymetal are creating a joint venture for development of Nezhdaninskoye deposit in Yakutiya, owned by Polyus Gold, according to companies’ joint press release. In a first stage, Polymetal is getting 15,3% in project, the total investments will amount $18 million, $10 million of which the company is paying to Polyus Gold, and $8 million will be invested in project for financing geological exploration work and other expenses of JV during first 15 months.
In a second stage, Polymetal is getting an opportunity to increase its interest in Joint Venture to 50%, $72 million must be invested during the period from 16-th to 52 month from the date of JV creation. Cash assets are planned to be directed for construction and launching of underground mine and processing plant. Polymetal is a Managing Patner, the company is also responsible for preparation of final feasibility studies (FS).
In case of Polymetal withdrawal from the project after the first stage, the cooperation is discontinued without any disbursement, and its participation interest is acquired by Polyus Gold by nominal value. Completion of the first stage is expected in January 2016.
Last summer the Kommersant business daily with reference to the source informed that Polyus Gold and Polymetal are negotiating about possibility of joint development of Nezhdanskoye deposit. According to unofficial information, it was discussed that Polymetal could partly pay its interest in project by cash and partly –by investments.
Supplies of Nezhdanskoye deposit are more than 20 million ounces (632 tons) of gold in в refractory ores. This is one of the largest deposits ofPolyus, but also a problem one. The company wrote down about $250 million of monetary value of the deposit’s assets in 2013 due to decrease of gold prices and acknowledged the development perspectives to be under the question.Polyus agreed alliance with Canadian Kinross Gold concerning Nezhdanskoye in 2009, but in two years it collapsed.