Amur Zoloto to become public in $120 mln deal with Sweden's Kopy Goldfields
MOSCOW. May 29 (Interfax) - Amur Zoloto, a gold miner controlled by Musa Bazhayev's Alliance Group, might become a public company as a result of a reverse takeover by Sweden's Kopy Goldfields.
Kopy Goldfields said it has agreed with Amur Zoloto's shareholders on a deal that values the Russian company at $119.6 million.
Kopy Goldfields will acquire 100% of Amur Zoloto in exchange for about 782 million of its own new shares. As a result, Amur Zoloto's shareholders will get an 88% stake in the merged company. For Kopy Goldfields shares, the deal implies a premium of 54% to the three-month average price.
The deal is expected to be closed in August. This requires the approval of Kopy Goldfields shareholders and the issue will be put before the annual general meeting on June 30. Shareholders representing about 30% of Kopy Goldfields stock have said they plan to vote in favour of the proposed deal.
The transaction is also subject to Kopy Goldfields being approved to continue trading on Nasdaq First North in Stockholm.
Kopy Goldfields is engaged in exploration in Russia, while Amur Zoloto has existing mining operations. Amur Zoloto is one of Russia's 25 largest gold miners, with annual production of 52,000 ounces of gold equivalent, the Union of Gold Producers estimated. The company produced 14,000 ounces in the first four months of 2020.
Following completion of the transaction, Kopy Goldfields will have total proven and probable reserves of 1.1 million ounces and measured, indicated and inferred resources of 2.3 million ounces. The combined company would have had an aggregated EBITDA of approximately $24 million as of the financial year 2019.