Polymetal delays Russian decision as Polyus sells out to Kulakov

Polymetal International has been given an extra three months to decide whether to enter into the next stage of its 18%-owned Russian joint venture after partner Polyus Gold sold out.

London-listed Polyus confirmed that it had sold its 82% stake in the Nezhdaninskoye gold deposit in Yakutia, Russia for $158 million to Ivan Kulakov, former CEO of Highland Gold Mining and one-time protégé of Roman Abramovich at Sibneft.

Polymetal's option to enter into Stage 2 of the joint venture, where it would earn in up to a total of 50% through investing an additional US$69m over the next four years, was scheduled for April 2017.

This will be extended for a further three months, until July 2017, the company said on Tuesday, with the key terms of the joint venture operation and the earn-in mechanism for Polymetal remaining unchanged.

Polymetal has initiated discussions with Kulakov with regards to the joint development of Nezhda and said it will continue exploration and technical works at Nezhda in accordance with the project schedule.

"We welcome Mr. Kulakov as our new joint venture partner for Nezhda, and we continue to view our investment in this asset as a potential valuable addition to Polymetal's longer-term growth pipeline", said Polymetal CEO Vitaly Nesis.