Kazzinc, Verny Capital finalize acquisition of two gold fields in Kazakhstan
ASTANA. April 4 (Interfax) - Kazakh zinc producer Kazzinc and the investment company Verny Capital have finalized the acquisition of Orion Minerals, which owns licenses for exploration and development of Raigorodok and Komarovsky gold deposits in northern Kazakhstan.
"The deal has been closed. As far as the plans are concerned we are reviewing jointly with Kazzinc an investment program aimed at further development of the deposits," Erlan Ospanov, Verny Capital CEO, told Interfax.
Ospanov said the Komarovsky field would be the primary ore processing site while additional exploration along with expansion of current production oxidized ore leaching capacity will be conducted at Raigorodok. He also said that "upon receipt of a full survey the plan to build a sulphide ore processing complex will be worked out."
The total value of the transaction is around 30 billion tenge (150.72 tenge/$1 on April 4). Verny Capital has 10.5% and Kazzinc - 89.5% of the project. The deal was made with company CAMMEX, the owner of Orion Minerals LLP.
Komarovsky deposit is located in Kostanai region with 40 tonnes of commercial reserves. Raigorodok deposit holding 30 tonnes of gold is located in the Akmola region.
Kazzinc is a major integrated zinc producer with considerable copper, precious metals and lead output. The company owns Kazakhstan's largest gold producer Altyntau.
Last October, Glencore International Plc purchased a 18.91% stake in Kazzinc from Verny Capital and increased its holding in Kazzinc to 69.61%. Kazakh National Welfare Fund Samruk-Kazyna bought 29% stake in Kazzinc from Verny Capital for $1.65 billion in February this year.
According to unofficial sources, Kazakh businessman and politician Bulat Utemuratov is the beneficiary of Verny Capital.