Polymetal to pour $20m into ThreeArc Mining

Polymetal has entered into a legally binding agreement to invest $20m in exchange for a 9.1% stake in ThreeArc Mining , it announced on Thursday, which owns 100% of the Tomtor niobium and rare-earth metals project.

The FTSE 100 company said the pre-money enterprise value was estimated to be $259m, and said the proceeds would be used to complete the Tomtor pre-feasibility study and initial JORC-compliant ore reserve and mineral resource estimate.

Completion would take place according to the statutory registration procedure, Polymetal said, which was expected to occur before the end of March.

“Investment in Tomtor provides us with a high-quality exposure to the electric vehicle revolution by establishing strategic beachhead in the Nb and REE markets,” said group chief executive officer Vitaly Nesis.

“Our capital injection and our engineering expertise will be key in driving the project forward.

“We intend to consider any further potential steps of Polymetal's engagement with the asset after the completion of JORC-compliant reserve estimate.”

At 0835 GMT, shares in Polymetal International were down 3.94% at 1,049p.