Petropavlovsk finalises gold sales agreement with Gazprombank

Russian gold miner Petropavlovsk has signed and fully executed a gold sales agreement with the nation's gas industry bank Gazprombank.

The twelve-month agreement will see Petropavlovsk deliver a total of 96,000 ounces of gold with payment being made in advance.

All advances will then be settled using proceeds at the prevailing gold price at the date of shipment.

Petropavlovsk's chief financial officer, Audrey Maruta, highlighted that the forward gold sales agreement with Gazprombank "provides greater flexibility in managing the working capital of the group".

Petropavlovsk is currently in the construction phase of a state-of-the-art pressure oxidation facility to process its substantial refractory resource base.

As of 1015 GMT, shares had grown 1.12% to 7.24p.