Petropavlovsk buys Amur Zoloto for $144 million

Gold producing company Petropavlovsk has signed an agreement with Alliance Mining Group and Lexor Group SA Musa Bazhaev on acquisition of Amur Zoloto, the gold miner informs in its statement to the London Stock Exchange. The deal value will make up about $144 million.

In accordance with the terms of the agreement, Petropavlovsk will hold an additional issue of its shares. As a result of this procedure, structures of Musa Bazhaev and his partners will receive 1.434 billion shares of Petropavlovsk, which corresponds to approximately 30.3%. The new shares of the company are estimated at 6.89 pence per security. In accordance with the current exchange rate of the British pound to the dollar, the amount of the transaction by its closing could be around $144 million, Petropavlovsk specifies in its message.