4 Apr 2016 09:30

Polymetal buying gold deposit from Glencore subsidiary for $100 mln

MOSCOW. April 4 (Interfax) - Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, has entered into a legally binding agreement with Kazzinc, a subsidiary of commodity trader Glencore, on the acquisition of Orion Minerals, which owns the license to the Komarovskoye gold deposit in Kazakhstan.

The deal is worth a total of $100 million, Polymetal said in a statement. In addition, Kazzinc will receive deferred compensation from future production at Komarovskoye linked to gold prices. The royalty will be calculated on a quarterly basis and paid if the gold price is above $1,250 per ounce, but the royalty will not exceed $80 million.