Polymetal had designated Khakanja as another mine that does not fit its current focus on quality and will take away $5 million in cash and hand over $25 million in debt to the "unrelated" group of private Russian buyers who have taken it on.

The Russian miner recently sold its Kapan project in Armenia after only two years of ownership. 

Khakanja, in Russia's far east, is a gold and silver project including several deposits and a 600,000 tonne per annum CIP plant.

The project only has a year left of planned mine life and Polymetal had been bringing in third party ore to keep up plant usage.

The 2019 all-in sustaining cost was forecast at $1,000 per gold equivalent ounce.

CEO Vitaly Nesis said he wished the new owners "success in bringing down costs and finding new reserve ounces" to keep the operation running.

The reserve for the project includes old stockpiles at Khakanja itself, Avlayakan and Ozernoye, amounting to about 100,000oz gold equivalent.

An exploration property included in the sale also has a reserve of 140,000 gold equivalent.