Saturday, January 26, 2008

Polymetal buys Russian gold mine from Kinross Gold Corporation for US $15.0 Million

Russian gold-miner Polymetal has completed the acquisition of a 98,1% stake in Omolon Gold Mining Company , which owns the Kubaka mine, from Canada's Kinross Gold, the company said on Friday.

Kubaka, in Russia's Magadan Region, produced 90,8 t of gold between 1997 and 2005, when it was put on care and maintenance.

Polymetal agreed to pay a subsidiary of Kinross $15-million plus a royalty for the mine.

Who shoulders the environmental liability?

A Model Mine Shows Its Cracks: An Independent Report on Environmental Problems At The Kubaka Gold Mine in the Russian Far East

The Federal Antimonopoly Service of the Russian Federation approved the transaction last month, Polymetal said in an RNS announcement.

The company plans to reopen the mine in 2011, at a production rate of between 150 000 oz/y and 250 000 oz/y.

In order to meet this target, it will identify targets for detailed exploration this year, produce resource estimates on one or two of the targets in 2009 and aims to complete a feasibility study the following year.

Here is the full article.