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RNS Number : 3228L
29 April 2020
29 April 2020
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.
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.
Please visit www.petropavlovsk.net or contact:
Petropavlovsk PLC +44 (0) 20 7201 8900
Patrick Pittaway / Max Zaltsman / Viktoriya TeamIR@petropavlovsk.net
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
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(END) Dow Jones Newswires
April 29, 2020 06:12 ET (10:12 GMT)