Kopy Goldfields establishes operations in Khakassia through acquisition
Kopy Goldfields AB’s (publ) wholly owned subsidiary JSC AG Mining (“AGM”), has signed an agreement to acquire a 25% interest of the Russian gold company Zolotaya Zvezda CJSC (“Zolotaya Zvezda”), for a total cash consideration of MRUB 550 (appr MUSD 8.9) including transaction costs. Zolotaya Zvezda is an established gold producer located in Khakassia region of Russia with target gold production of some 5 koz in 2022. Zolotaya Zvezda holds 0.62 million oz in C1+C2 gold reserves plus 1.2 million oz of P1 gold resources in accordance with the Russian reserve classification.
“Through this transaction we expand our operations into Khakassia, which makes another important milestone in Kopy Goldfields’ development. This is a solid project with large exploration and production upside,” said Mikhail Damrin, CEO of Kopy Goldfields.
Khakassia is a historical gold mining area with well-developed infrastructure and availability of local skilled personnel. Zolotaya Zvezda has been running heap leach bedrock mining gold projects since the mid 90s. It currently operates three open pit mining projects and multiple exploration sites.
Modernization and extension of Mayskiy processing plant has been initiated in 2022, targeting to increase the capacity to 250 kilo tonnes of ore per annum and upgrade processing method to direct leaching of gold ore. The commissioning of this project is expected in the second half of 2023.
The acquisition will be financed through the group’s available cash sources. The seller is a private owner.
Upon completion of acquisition, which is expected in November 2022, AGM via its subsidiaries prepares to take over operations of the project.
This press release contains forward-looking statements that reflect the Company's and the company group's intentions, beliefs, or current expectations about and targets for the Company's and the company group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. The forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Kopy Goldfields operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Kopy Goldfields’ continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including but not limited to risks and uncertainties surrounding any gold production and exploration company at an early stage of its development. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein apply only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is required by law or Nasdaq First North Growth Market rule book for issuers.