Polymetal International PLC entered into a binding agreement to sell its 50% stake in the Dolinnoye gold property to JSC AK Altynalmas.
The company acquired the Dolinnoye stake through a series of deals in 2015 and 2016 to use it as a source of ore for the Varvara processing hub in Kazakhstan.
"Dolinnoye became manifestly noncore after Komar fully supplanted it as a source of ore for Varvara," Polymetal CEO Vitaly Nesis said. An October 2017 reserves estimate for Komar increased contained gold by 57%, extending the mine life of the Varvara operation by three years.
Dolfinflip Co. Ltd., which owns the remaining 50% interest, will also sell its stake to Altynalmas, according to a March 14 statement.
Altynalmas will pay US$33.5 million to acquire Aktogai Mys LLC, which holds the license and contract for Dolinnoye gold property, and Polymetal and Dolfinflip will each receive half of the consideration.
The deal is expected to close in the second quarter, subject to various approvals and conditions.
Polymetal does not expect the sale to impact its production and cost guidance for the year. The company expects to produce 1.55 million ounces of gold equivalent in 2018.
