OREANDA-NEWS. Polyus Gold, Russia’s largest gold producer announces today the decision to acquire a 50% stake (292 493 ordinary shares) in OJSC South Verkhoyansk Mining Company from Interros holding company. The decision was passed by Polyus Gold Board of Directors in the meeting held on November 7, 2006.

According to the press service of OJSC “Polyus Gold”, the transaction will amount to US$ 300 mln. This acquisition will result in consolidation of 100% of SVMC shares under Polyus Group (OJSC Polyus Gold and its subsidiaries).

Nezhdanisnkoe deposit is currently undergoing extensive exploration, especially in the central and northern areas. These exploration works are expected to provide substantial growth in gold reserves. The results of the exploration will become the basis for developing Nezhdaninskoe scoping study to be compiled in 2007 by VNIPIPromtechnologii engineering company which was chosen general contractor through a recent tender.

Commenting on the decisions of the Board, CEO of Polyus Gold Evgueni Ivanov said: "By consolidating 100% of SVMC shares Polyus Gold will substantially increase its reserve base and establish full control over one of the largest gold deposits in Russia".