Sale of Non-Core Assets
RNS Number : 0047J
Petropavlovsk PLC
10 July
2013
Sale of Non-Core Assets
Petropavlovsk PLC ("the Company" or, together
with its subsidiaries, "the Group") announces the execution of a Share Purchase
Agreement dated 2 July 2013 relating to the transfer of 21% of the issued shares
in closed joint-stock company JSC Verkhnetisskaya Ore Mining Company
("Verkhnetisskaya") to OJSC
Krasnojarskaya Gorno-Geologicheskaya Company ("Krasnojarskaya GGK").
The total
consideration for the sale is a rouble equivalent of US$172,756 which will be
applied to ongoing working capital requirements.
Verkhnetisskaya holds two licences to explore and extract
hard-rock gold from the Verkhnetisskaya and Troeusovskaya deposits in
Krasnoyarsk region of Russia.
Both of these deposits are at the exploration
stage of development; neither are producing or are included in the Groups
production plans.
The value of the gross assets which
are the subject of this transaction is US$ 0.2 million and a loss of US$ 10.4
million was attributable to them, as consolidated in the Groups consolidated
financial statements for the year ended 31 December 2012.
The transfer of title will take place within five
business days from the date of the Share Purchase Agreement.
The prior approval
of the Federal Antimonopoly Service of Russia has already been obtained for the
transaction.
Following completion of the transaction, the Group will remain a
49% shareholder in Verkhnetisskaya.
Upon completion of
the sale Verhnetisskaya will cease to be a subsidiary of the Group.
Commenting, Chairman, Peter Hambro
said:
"In light of the recent drop in the gold price, the Group has adopted
a strategy to focus its exploration activities on areas near to its current
processing facilities in the Amur region.
The Verkhnetisskaya and Troeusovskaya
deposits, being located some distance away from our four working mines, were
therefore considered to be non-core assets."
Enquiries
Petropavlovsk PLC
Alya Samokhvalova
Rachel Tuft
|
+44 (0) 20 7201 8900
|
Maitland
Neil Bennett
George Trefgarne
Seda Ambartsumian
|
+44 (0)20 7379 5151
|
This information is provided by
RNS
The company news service from the
London Stock Exchange
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