LSE: MOEX: AIX: GOLD: $

Polymetal exchanges its Chaarat convertible notes into equity

30 July 2019

Polymetal announces that following the sale of the Kapan mine in January 2019 to Chaarat Gold Holdings Limited (AIM: CGH) (together with its subsidiaries - “Chaarat”), Polymetal has agreed to exchange the US$ 10m of Chaarat’s Convertible Notes received as part of original consideration, as well as factoring in working capital settlement under the SPA, for 14,638,020 newly issued ordinary shares of US$ 0.01 each (“New Shares”) in Chaarat. This shall represent 3.5% of the enlarged issued share capital of Chaarat post allotment.

“Exchange of convertibles into Chaarat stock, working capital settlement, and release of warranties and indemnities ensure Polymetal’s direct exposure to Chaarat’s performance while limiting legacy jurisdictional risks,” said Vitaly Nesis, Group CEO of Polymetal.

The New Shares will be subject to a 12-months lock-up arrangement and Chaarat will have a right of first refusal in the event of the sale of those New Shares.

As a part of this arrangement Chaarat Gold International Limited, a wholly owned subsidiary of Chaarat, has agreed to release Polymetal from warranties and indemnities under the sale and purchase agreement on acquisition of Kapan except for a limited number of reserved matters. This deal also settles the post-completion working capital adjustment between the parties.

Chaarat has also agreed to waive its exclusivity right and right of first refusal for Lichkvaz, Polymetal’s remaining asset in Armenia. This will pave the way for involving other interested parties into the ongoing sale process for Lichkvaz.

Back to press releases

Polymetal International plc (LSE, MOEX: POLY, AIX: POLY, ADR: AUCOY) (together with its subsidiaries — “Polymetal”, the “Company”, or the “Group”) is a top-20 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.
THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, “FORWARD-LOOKING STATEMENTS”. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS “TARGETS”, “BELIEVES”, “EXPECTS”, “AIMS”, “INTENDS”, “WILL”, “MAY”, “ANTICIPATES”, “WOULD”, “COULD” OR “SHOULD” OR SIMILAR EXPRESSIONS OR, IN EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY’S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY’S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY’S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED.
Download release PDF (121 KB)
Investor Relations Contacts

Tel. +44.20.7887.1475

Evgeny Monakhov

Tel. +7.812.313.5964

Kirill Kuznetsov
ir@polymetalinternational.com

Media Contacts

Tel. +44.20.3727.1000

Leonid Fink
Viktor Pomichal