Polymetal Buys Kazakhstan Gold Deposit From Glencore Unit

Polymetal International Plc bought a gold mine in Kazakhstan from a unit of Glencore Plc for $100 million.

Payment for the Komarovskoye deposit will come from Polymetal’s existing cash and available credit lines, the company said in a Russian regulatory filing. The deposit’s inferred resources are estimated at 28 metric tons, according to the filing.

Ore from the acquired deposit will be delivered to Polymetal’s nearby Varvara processing hub and partially replace the lower-grade supplies from the Leach Circuit, the company said.

The initial investment is expected to be less than $5 million as most of the mine fleet will be transferred from Varvara and complemented by contractors. Polymetal agreed to pay Kazzinc Ltd., the Glencore unit, a royalty capped at $80 million and linked to future production from the deposit and gold price performance.

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