September 15, 2014. Polymetal bought a 100% stake in Severo-Kaluginskoye deposit in Sverdlovsk Region in the course of reorganizing Ural-Polymetal, a joint venture, the company’s official statement goes.

Prior to the deal, Polymetal used to own a 49.99% shareholding in the JV. The company’s financial report stated that the asset had zero balance sheet value after it was written off in 2013 following a downfall in metal prices.

‘Under the terms of the reorganization agreement, Ural-Polymetal was divided and stopped operating, while its assets and liabilities were distributed among the shareholders. Polymental received a 100% stake in the company that owns Severo-Kaluginskoye deposit and accepted the $20m worth of liabilities. All the rest of the assets and liabilities were transferred to Ural-Polymetal’s other shareholders,’ the company says.

Severo-Kaluginskoye deposit is located in Sverdlovsk Region, Russia, within 150km of Vorontsovskoye deposit and within 3km of a federal highway.

The deposit was discovered in the fifties; starting from 2011, survey work had been conducted by the joint venture.