30 Sep 2010 16:37

Polymetal planning to acquire three licenses in Kazakhstan

MOSCOW. Sept 30 (Interfax) - Polymetal plans to acquire one silver and two gold licenses in Kazakhstan, the No. 1 Russian silver miner's chief, Vitaly Nesis, told reporters at the Minex 2010 forum in Moscow.

"We've identified three assets [in Kazakhstan] that we think will create value for the company," Nesis said. One of them has not yet been licensed, and could be bought for cash, rather than shares Nesis said. Polymetal has 10% of its shares on its books that could be used as currency for acquisitions.

Nesis said the company aimed to acquire at least one of the licenses in the space of six months.

Polymetal already develops the Varvarinskoye gold-copper field in Kazakhstan.

It is also interested in two deposits in Ukraine, but it conducting test drills before entering into talks. Nesis declined to name the deposits.

He said the company had no plans to develop fields in Kyrgyzstan.

Polymetal is Russia's biggest silver producer and one of its top five gold producers. It produced 209,000 oz of gold in H1 2010.