Petropavlovsk PLC Update on Proposed Exercise of TEMI Option (3228L)
April 29 2020 - 5:12AM
UK Regulatory
TIDMPOG
RNS Number : 3228L
Petropavlovsk PLC
29 April 2020
29 April 2020
Petropavlovsk PLC
Update on the Proposed Exercise of an Option to Purchase 25
Percent of Temi LLC
Further to the announcement made on 16 April 2020, Petropavlovsk
PLC (the "Company'") announces that the Company held the adjourned
General Meeting today to consider two Resolutions whereby the
Company would exercise an option agreement to purchase 25% of TEMI
LLC as detailed in the Company's Circular to Shareholders dated 27
March 2020. Subject to shareholder approval, the Company has the
right to complete the purchase both in cash and in shares.
Since the decision to seek shareholder approval on exercising
the option was taken, market conditions have altered significantly
as a result of the Covid-19 pandemic. The Company's share price is
currently at a level which is more than 40% higher than the price
of GBP0.179 per new Ordinary Share agreed with the vendor,
Agestinia Trading Limited. In the current volatile environment the
Company is focusing on ensuring a continuing satisfactory liquidity
position.
In these changed circumstances the Board of Directors
understands the lack of majority support from shareholders for the
exercise of the option agreement on its current terms. The Board
accordingly announced at today's General Meeting that it was
withdrawing the two Resolutions.
The Company has until 21 May 2021 to exercise the option and the
Board and Management will review the possibility of exercising the
option over the year ahead, in the light of future market
conditions and in the interest of shareholders.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
About Petropavlovsk
With a Premium Listing on the London Stock Exchange,
Petropavlovsk (LSE: POG) is a major integrated Russian gold
producer with JORC Resources of 20.52Moz Au which include Reserves
of 8.21Moz Au.
The Company's key operating mines (Pioneer, Malomir and Albyn)
are in the Amur Region in the Russian Far East and the Company has
produced a total of c.7.6Moz of gold since operations began in
1994. Petropavlovsk has a strong track record of mine development,
expansion and asset optimisation.
The Group recently entered a new era of growth following the
successful commissioning and start-up of its flagship asset, the
Pressure Oxidation (POX) Hub at Pokrovskiy, which enables the
processing of the Company's abundant refractory reserves and
resources.
Petropavlovsk is committed to implementing international best
practices across all areas of sustainable development and is one of
the region's largest employers and contributors to the local
economy.
Enquiries
Please visit www.petropavlovsk.net or contact:
Petropavlovsk PLC +44 (0) 20 7201 8900
Patrick Pittaway / Max Zaltsman / Viktoriya TeamIR@petropavlovsk.net
Kim
Peel Hunt LLP
Ross Allister / David McKeown / Alexander
Allen +44 (0) 20 7418 8900
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor / James Asensio +44 (0) 20 7523 8000
Buchanan +44 (0) 20 7466 5000
Bobby Morse / Kelsey Traynor / Ariadna POG@buchanan.uk.com
Peretz
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END
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