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GEOPROMINING ANNOUNCES COMPLETION OF SALE OF GPM GEORGIA BV THAT REPRESENTS THE SALE OF MADNEULI AND QUARTZITE FOR A TOTAL OF US$120 MLN
arminfo
Monday, June 18, 20:43
GeoProMining ("GPM" or the "Company") announces that on June 14,
2012, it completed the sale of GPM Georgia BV that represents the
sale of two Georgian companies Madneuli and Quartzite for a total
cash consideration of US$120m. This is reported by the official
website of the company, however, the buyer of these Georgian assets
is not mentioned.
The press release of GPM says that GPM acquired both the Georgian
copper-gold mining company Madneuli and the gold mining company
Quartzite in 2005 with the goal of becoming a leading gold producer
in the Caucasus region. Such strategy has been successfully executed
and these businesses have demonstrated growth in annual production of
five times under GeoProMining's management. The divestiture is a direct
result of the Company decision to consider its strategic options for
these entities following the recent tender organized by the Georgian
government where Madneuli's mining license was tendered and acquired
by a company not affiliated with GPM, effective from May 2014.
GeoProMining considers the divestiture as in the best interests of its
shareholders. The transaction will enable GPM to focus its regional
growth strategy on its subsidiaries in Armenia, namely GPM Gold and
the Agarak copper-molybdenum mine complex, and on its antimony-gold
assets in Russia, whilst at the same time substantially strengthening
the Company balance sheet.
GeoProMining's CEO, Roman Khudoliy, commented on the divestiture:
"We have been working for the past few months to monetize our Georgian
presence and are pleased to announce the successful conclusion of these
efforts. Our key business priority is to now complete the expansion
of the Albion processing facility at the Ararat facility in Armenia,
which will transform GPM Gold into a world class asset, and support
our multi-year growth expectations."
GeoProMining's Senior Vice-President, Sergei Nossoff, added: "This
is a new beginning for GeoProMining and an opportunity to focus on
developing very promising projects in both Armenia and Russia and
in addition, to look at opportunities in new regions for GPM. We
believe our unique combination of gold-copper-antimony projects in
the CIS region is unmatched in the mining industry and we can use
this combination as leverage and foundation for future growth."
VTB Capital acted as financial advisor on the transaction and Clifford
Chance acted as legal advisor to GeoProMining.
arminfo
Monday, June 18, 20:43
GeoProMining ("GPM" or the "Company") announces that on June 14,
2012, it completed the sale of GPM Georgia BV that represents the
sale of two Georgian companies Madneuli and Quartzite for a total
cash consideration of US$120m. This is reported by the official
website of the company, however, the buyer of these Georgian assets
is not mentioned.
The press release of GPM says that GPM acquired both the Georgian
copper-gold mining company Madneuli and the gold mining company
Quartzite in 2005 with the goal of becoming a leading gold producer
in the Caucasus region. Such strategy has been successfully executed
and these businesses have demonstrated growth in annual production of
five times under GeoProMining's management. The divestiture is a direct
result of the Company decision to consider its strategic options for
these entities following the recent tender organized by the Georgian
government where Madneuli's mining license was tendered and acquired
by a company not affiliated with GPM, effective from May 2014.
GeoProMining considers the divestiture as in the best interests of its
shareholders. The transaction will enable GPM to focus its regional
growth strategy on its subsidiaries in Armenia, namely GPM Gold and
the Agarak copper-molybdenum mine complex, and on its antimony-gold
assets in Russia, whilst at the same time substantially strengthening
the Company balance sheet.
GeoProMining's CEO, Roman Khudoliy, commented on the divestiture:
"We have been working for the past few months to monetize our Georgian
presence and are pleased to announce the successful conclusion of these
efforts. Our key business priority is to now complete the expansion
of the Albion processing facility at the Ararat facility in Armenia,
which will transform GPM Gold into a world class asset, and support
our multi-year growth expectations."
GeoProMining's Senior Vice-President, Sergei Nossoff, added: "This
is a new beginning for GeoProMining and an opportunity to focus on
developing very promising projects in both Armenia and Russia and
in addition, to look at opportunities in new regions for GPM. We
believe our unique combination of gold-copper-antimony projects in
the CIS region is unmatched in the mining industry and we can use
this combination as leverage and foundation for future growth."
VTB Capital acted as financial advisor on the transaction and Clifford
Chance acted as legal advisor to GeoProMining.