Polymetal International PLC formed a partnership with Mineral Exploration Network (Finland) Ltd. for the exploration of high-grade, near-surface gold mineralization within an 83-square-kilometer area in Russia's Chaunsk region of Chukotka.
The deal will provide feed for the company's Mayskoye processing plant in Russia.
Polymetal agreed to fund staged exploration between 2020 and 2023, which is expected to result in an initial JORC-compliant resource or reserve.
The company may earn 25% in the joint venture by contributing 20 million Russian rubles, with an option to increase its stake to 80% by contributing further 60 million rubles on completion of the first-year field program in 2020.
Additionally, Polymetal will retain a five-year option to increase its interest to 100% if the exploration results are positive.
The company added May 28 that its total investments are not expected to exceed US$10 million.
In April, the company agreed to earn up to a 100% stake in the Taimyr porphyry copper-molybdenum-gold project in Russia.
As of May 27, US$1 was equivalent to 64.39 Russian rubles.