“Amur Zoloto” controlled group “Alliance” Musa Bagaeva may become public. The Swedish company Kopy Goldfields reported agreement to reverse the Russian takeover of gold miner. The transaction is estimated almost in $120 million In the combined company shareholders “Amur Gold” will receive 88%. The deal should be closed in August, before this it is necessary to obtain the approval of shareholders and regulatory authorities.Swedish Kopy Goldfields reported agreement with the shareholders of “Amur Zoloto” (controlled by the group “Alliance” Musa Bagaeva) about repurchase of shares in Russian gold miner. As part of the deal “Amur Gold” valued at $119.6 million share Price Kopy Goldfields in a deal designed with a premium of 54% to the average price on the stock exchange for the last three months. In the combined company shareholders “Amur Gold” will own 88%.It is expected that the transaction will be closed in August. But it has yet to be submitted for regulatory approval and shareholders of Kopy Goldfields, which will review it at the annual meeting on June 30. In the message it is specified that shareholders, now controlling about 30% of Swedish companies have expressed readiness to support the deal. In addition, one of the terms of the agreement is the continuation of trading of shares of Kopy Goldfields on site of the NASDAQ First North.”Amur Gold” was created in 2010 through the allocation of business for the extraction of gold and silver from OJSC “Artel starateley “Amur”” (owned by Musa Bagaeva). Leads the development of deposits in the Khabarovsk region, the total reserves are estimated at 1.55 million ounces total mineral resources of 2.16 million ounces. The company is among the 20 largest Russian gold mining companies on the production of gold. In 2019, the company produced 1625,4 kg of gold. Kopy Goldfields is a Swedish company for gold exploration, working in the Irkutsk and Amur regions of Russia. In 2006, the Swedish company Central Asia Gold AB has bought the license for the Deposit Kopylovskoe together with OOO “Kopylovskiy”. Next, the acquired company became independent, its shares were distributed to shareholders of Central Asia Gold, and in 2011 it was renamed in Kopy Goldfields. Principal shareholders — investment companies and funds, the largest shareholder — KGK Holding AB owns 10.2% of Kopy. The combined company is expected to have reserves of 1.1 million ounces and resources of 2.3 million ounces. EBITDA of the combined company, based on the data of 2019, would be $24.2 million Transaction will provide the shareholders with a unique opportunity to significantly increase the company’s value by combining the portfolio of assets and projects Kopy Goldfields and “Amur Gold”, States the report Kopy Goldfields. The deal will contribute to the further development of Kopy Goldfields projects, including project Red noted on the website of the company.Company Musa Bagaeva long harbored plans to become public. In 2016 it is proposed to unite with Petropavlovsk that has a listing on the exchange. Negotiations involved “Renova” Viktor Vekselberg, which offered Petropavlovsk to buy from him “Gold of Kamchatka”. But then Petropavlovsk announced its intention to focus on existing assets. Projects juniornay Kopy Goldfields will be further developed and “Amur Gold” has long led the search of large projects. Promising and a major Russian gold deposits is still attractive to foreign investors even in the face of sanctions, said Mr. Kashuba. According to sources “Kommersant” in the industry, the Swedish company, led the search for a strategic investor. In particular, negotiations were conducted with Roman Trotsenko, who recently shows interest in the gold mining industry. Vice-President of Moody’s in Russia and the CIS Denis Perevezentsev adds that “Amur Gold”, but the status of a public company, will have access to the resource base of Kopy Goldfields, which in turn, becomes the company, a busy search for and evaluate resources involving primarily joint capital of a gold miner with access to credit resources for investment in development projects.Anastasia Vedeneeva, Eugene Zainullin
