Polymetal buys Glencore Kazakh gold mine for $100m

Polymetal International said it has agreed to buy the Komarovskoye gold deposit in Kazakhstan from Glencore for $100m (£70.4m) in cash plus royalties.

The deal should be completed this year, Polymetal said.

Glencore will receive royalties linked to future production from the Komarovskoye and future gold price performance. The royalty will be calculated on a quarterly basis, payable at gold prices above $1,250 per ounce, and capped at a total of $80m.

Komarovskoye is located in the north-western Kazakhstan, 10km from the city of Zhitikara.

At 31 December 2015, Joint Ore Reserves Committee-compliant resources were estimated at 28m tonnes at 1.5g/t gold containing approximately 1.4m ounces.

Polymetal's net debt/ adjusted EBITDA will not materially change after the acquisition compared to 2015 year end (1.97x as at 31/12/2015), the company said.