Kazakhgold and Assaubayev family agree new terms

Finance

Publishing Date: 11 Apr 2011 12:06pm GMT
Author: Mining Journal

Kazakhgold Group Ltd, a subsidiary of OJSC Polyus Gold, has agreed new terms with the Assaubayev family, after a deal to sell its entire gold portfolio fell through last month.

A settlement deed has been signed relating to all criminal and civil claims between the two parties.

The transaction value remains at US$509 million. In the first tranche Altyn will now pay US$259.59 million, compared with the US$331 million under the previous agreement, for a 51% interest in the asssets. The second tranche is for payment of US$249.41 million, compared with US$178 million previously for the remaining interest.

In December, the Assaubayev family, through its company AltynGroup Kazakhstan LLP, agreed to purchase Kazakhgold Group Ltd’s mines on the condition that all criminal and civil investigations are dropped.

The deal would clear the way for Polyus to reverse into Kazakhgold, giving it a primary listing in London.

The cut-off date to complete the first tranche acquisition is September 12. The second tranche has a cut-off date of December 31, 2012.