* Partners with VTB Capital for $10 mln cash-and-share deal
* Deal has to approved by Russian government
* 7 mln ounces of platinum recovered in area
MOSCOW, Dec 18 Russian precious metals miner
Polymetal has agreed to buy its first platinum
exploration project in Russia together with VTB Capital, a unit
of Russia's No.2 lender by assets, VTB.
The total value of the deal is about $10 million, Polymetal
said on Tuesday.
Polymetal acquired a 24.99 percent stake in the Svetlobor
platinum project from a Cypriot firm Ubergot Investments,
controlled by Russian individuals, in exchange for 130,053 new
shares in Polymetal.
VTB Capital has acquired the remaining 75.01 percent stake
in the project from Ubergot in exchange for 390,369 new shares
in Polymetal which it is buying for $6.9 million. It has also
agreed to sell this stake to Polymetal for the same amount
following regulatory approval.
The new ordinary shares to be issued to Ubergot and VTB
represent approximately 0.14 percent of Polymetal's increased
share capital, it added. The deal has to be approved by the
Government Commission on Monitoring of Foreign Investments.
The Svetlobor licence area is situated in the Sverdlovsk
region of Russia and 200 kilometres south-west of Polymetal's
producing Voro mine.
"Between 1824 and 2003, more than 7 million troy ounces of
platinum was recovered locally by placer miners in the Is and
Tura river valleys, making the area the world's largest
historical alluvial platinum producer," Polymetal added.
It plans to publish a mineral resource estimate for the
project under JORC guidelines in the fourth quarter of 2014.