PROJECT FINANCE

Petropavlovsk bond issue to fund Pioneer plant

Russia gold miner Petropavlovsk will issue up to US$125 million of convertible bonds to finance expansion of the processing capability at its Pioneer mine in the country's far east and repurchase bonds due in 2020.

Staff reporter
 Petropavlovsk's Pioneer mine in Russia's far east

Petropavlovsk's Pioneer mine in Russia's far east

Net proceeds from the new bond issue will go towards a US$25-30 million flotation plant at Pioneer, taking overall processing capacity to 3.6 million tonnes per annum by 2020.

Pioneer, in Amur Oblast on the Trans-Siberian Railway near the Russia-China border, will supply refractory gold concentrate for processing into gold doré at the newly commissioned Pressure Oxidation Hub at the nearby former Pokrovskiy mine site.

The company says the flotation plant at Pioneer "is a significant step towards unlocking the value of refractory gold at Pioneer where 80% and 65%, respectively, of openpit and underground reserves are refractory".

The company's share price (LSE: POG) was down 6.45% Wednesday at 8.7p, capitalising the company at about £283 million. The shares are up 51% since the start of the year.

 

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