Polymetal disposes of Russian platinum asset for $5.5m

Precious metals outfit Polymetal disposed of its 100% interest in the Svetlobor platinum exploration project to a group of private Russian buyers for $5.5m on Thursday.

Polymetal expects the sale of Svetlobor, which it acquired for $9.7m worth of stock back in 2013, to result in a $4.8m accounting profit for the company.

The FTSE 250-listed miner told investors it intends to use proceeds of the cash sale to reduce its overall debt.

Chief executive Vitaly Nesis, said: "Svetlobor lacks scale and consequently does not fit our strategy."

"The company retains significant exposure to PGMs through the large open-pit Viksha project."

As of 0930 GMT, Polymetal shares had ticked up 0.86% to 723.20.