OREANDA-NEWS. Kazakhmys PLC confirms that it has completed the acquisition of Koksay, first announced on 27 February 2014. Koksay is the Group's third major growth project.

As previously announced, the purchase price is USD 260 million in cash, of which USD 65 million is deferred. Of the deferred consideration, USD 30 million is payable on 1 January 2015 and USD 35 million on 31 July 2015. The second instalment is subject to confirmation of reserves.

The Koksay deposit is in south eastern Kazakhstan around 234 kilometres from Almaty and is well located for existing infrastructure. The mine has a total resource of approximately 3.4 MT of copper, with an average grade of 0.48%. There are by-products of gold, silver and molybdenum.

The project is at scoping stage and has an estimated mine life of over 20 years with average annual production of around 80 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate.