Petropavlovsk said it expects to report a $30mn non-cash accounting loss linked to the disposal of 65% of ZRK Omchak
Meridian Minerals Limited (ASX:MII) has signed a non-binding Heads of Agreement to acquire a 75% interest in the non-alluvial assets of Russian gold company ZAO ZRK Omchak
from UK listed Petropavlovsk PLC (LON:POG) (PINK:PPLKY).
Through FinTronics' wholly owned subsidiary, Maxing Investment Limited, the Group has entered into a conditional Sale and Purchase Agreement with Truffle Rich Holdings Limited, whereby it will acquire the entire issued share capital of Spring Vast Limited,an investment holding company that will own 80% interest in CSJC Gold Mining Company Omchak ("Omchak") for an aggregate consideration of US$300 million (the "Acquisition").
Omchak and its subsidiaries are engaged in the business of geological exploration and commercial mining of placer gold deposits and hard rock gold deposits located in Russia.
Production from the currently 65%-owned Omchak Joint Venture ("Omchak JV") is ahead of target for the year.
The management team of Omchak JV aims to increase their reserve base through new acquisitions and expansions to new regions.
In the Amur Region Omchak JV's subsidiary OOO "Noviye Tekhnologii" started preparatory works for the commencement of production on five licence areas acquired during 2004.
Petropavlovsk May Sell ZAO Omchak, but Retain Alluvial Assets: Neutral
Crucially, the alluvial assets owned by Omchak are not intended to be included in the deal and would be transferred to Petropavlovsk prior to the sale.
Petropavlovsk raised its stake in ZAO Omchak to 90% in July 2010.
Another 16 koz were produced through alluvial operations, while 56 koz were produced by its fully consolidated Omchak
subsidiary as well as JVs.