Petropavlovsk PLC Update on proposed termination of IRC Guarantees (7492Z)
May 25 2021 - 5:36AM
UK Regulatory
TIDMPOG
RNS Number : 7492Z
Petropavlovsk PLC
25 May 2021
25 May 2021
Petropavlovsk PLC
Update on proposed termination of IRC Guarantees and disposal of
the Company's interest in IRC
As announced on 18 March 2020, Petropavlovsk PLC
("Petropavlovsk" or the "Company" or, together with its
subsidiaries, the "Group") entered into an agreement (the
"Agreement") with Stocken Board AG ("Stocken") a
Liechtenstein-incorporated investment company, which set out the
terms on which Petropavlovsk would sell to Stocken a c.29.9%
shareholding in IRC Limited ("IRC"), subject to certain conditions
precedent being met (the "Proposed Transaction").
The Company announces that it has been notified by Gazprombank
("GPB") that GPB has consented to the Proposed Transaction.
Accordingly, the Agreement has now become binding upon the
Group.
The terms of the Proposed Transaction remain as set out in the
Agreement and as announced on 18 March 2020. As announced at that
time, completion of the Proposed Transaction remains conditional
upon:
-- Termination and irrevocable release of the Group from all
loan guarantees given to GPB under the facility agreements signed
between Kimkano-Sutarsky Mining and Beneficiation Plant LLC (a
subsidiary of IRC) and GPB in December 2018 ("Guarantees")Íž and
-- The receipt of any consents that may be required under the
Company's US$500 million 8.125% notes maturing November 2022 or
confirmation by the Board that none is required.
There can be no certainty that the conditions precedent will be
satisfied and, as such, that the Proposed Transaction will proceed
to completion.
James Cameron, chairman of Petropavlovsk, said:
"The board notes that Stocken has been able to arrange for GPB
to outline a path to the removal of the Guarantees, which is a key
strategic focus for the Company. Removal of the Guarantees would
significantly reduce the financial risk of the Group, improve our
credit metrics and allow our new management team to focus on
developing our gold mining and processing business in the Amur
Region."
About Petropavlovsk
Petropavlovsk PLC (LSE: POG. MOEX: POGR) is a major integrated
Russian gold producer with JORC Resources of 19.50Moz Au which
include Reserves of 7.16Moz Au. Following its IPO on the
Alternative Investment Market (AIM) in 2002, Petropavlovsk was
promoted to the London Stock Exchange in 2009, where today it is a
Premium Listed company and a constituent of the FTSE 250, FTSE 350
and FTSE All Share indices. The Company's shares also trade on the
Moscow Exchange and are a constituent of the RTS Index and MOEX
Index.
The Company's key operating mines (Pioneer, Malomir and Albyn)
and its Pressure Oxidation (POX) Hub at Pokrovskiy, are located in
the Amur Region in the Russian Far East. Petropavlovsk has produced
a total of c.8.3Moz of gold since operations began in 1994 and has
a strong track record of mine development, expansion, and asset
optimisation.
Petropavlovsk is one of the region's largest employers and one
of the largest contributors to the
sustainable development of the local economy.
For more information
Please visit www.petropavlovskplc.com or contact:
Petropavlovsk PLC +44 (0) 20 7201 8900
Patrick Pittaway / Max Zaltsman / Viktoriya TeamIR@petropavlovskplc.com
Kim
Hudson Sandler +44 (0) 20 7796 4133
Charlie Jack / Katerina Parker / Elfie Petropavlovsk@hudsonsandler.com
Kent
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