Sberbank Capital acquires 49% of gold ore project in Armenia
YEREVAN. July 12. (Interfax) - LLC Sberbank Capital, a subsidiary of Sberbank of Russia , has acquired 49% of shares in Armenia's CJSC Paramount Gold Mining, which owns the license to develop the Lusadzhur gold ore deposit in Armenia's Kotayk Province.
Paramount Gold Mining said in a press release that industrial operations at the deposit, which is situated 70 kilometers from Yerevan, are slated to begin by the end of this year.
It did not specify the details of the deal. Armenian businessman Tigran Arzakantsyan, who was previously Paramount Gold Mining's only shareholder, owns a 51% controlling stake in the company.
A beneficiation plant capable of producing 150,000 tonnes of ore a year has already been erected at the deposit. Equipment for underground mining is currently being acquired, and construction of infrastructure has begun. Once the enterprise reaches its full capacity, which is planned for the end of 2013, up to 1 tonne of gold will be produced each year, the press release said.
C1+C2 reserves at the Lusadzhur gold deposit total 18.5 tonnes.
"Sberbank Capital has come to Armenia for the first time as a major investment partner, whose participation is a guarantee of the joint project's success. Our cooperation has broad prospects, since the Russian investor is interested in developing other ore deposits in Armenia, as well," Arzakantsyan is quoted as saying in the press release.
Its acquisition of a stake in the Armenian project is part of Sberbank Capital's strategy to expand its geography, the press release said.