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Troubled Gold Miner Sold Stake For 75% Less Than Rival Proposal

  • Petropavlovsk has agreed to sell IRC shares for $10 million
  • Avalon Mining says it offered to pay four times that amount
mine miner mining
Photographer: Waldo Swiegers/Bloomberg

Crisis-hit gold miner Petropavlovsk Plc accepted a bid for an iron ore investment, even as another bidder was prepared to pay four times as much, according to the frustrated suitor.

The revelation is likely to raise fresh questions for London-listed Petropavlovsk and its board, which has been buffeted by years of shareholder disputes, the arrest in December of its co-founder and former chief executive, Pavel Maslovskiy, on embezzlement charges, and the resignation last year of its auditor over governance concerns.