OREANDA-NEWS. Polymetal International plc purchased a 25% stake in Lichkvaz property in Armenia and agreed an earn-in program to take its ownership to 50%.

Polymetal purchased a 25% stake in the company owning Lichkvaz exploration licence in Armenia (including part of intracompany loan). The consideration comprises 429,260 shares equal to USD 3.5 million. Polymetal has also entered into agreement for financing of exploration activities (no more than 15 km of exploration drilling), technical research as well as JORC feasibility study in exchange for a right to increase its share in the project up to 50% after the completion of these tasks.

Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 380 km south of Yerevan. The infrastructure in the area is developed with power, water, accommodation and skilled labour force available.

A previous resource estimate (not compliant with JORC) puts the total mineral endowment of the property at 2.4 Mt of material at 6.9 g/t in the inferred category for approximately 0.5 Moz of gold equivalent contained.

The geology of the project is characterised by a series of near-vertical shears and steep westerly dipping vein sets ranging up to 4-5 metres in width, hosted in andesite. The strike length of the system is about 800 metres, with northern extension covered by glacial till. The Lichkvaz property area is a part of the Tethyan Belt. The Company believes that property retains significant exploration potential.

I am pleased to report that we have decided to pursue the acquisition of the Lichkvaz, our first step in Armenia." said Vitaly Nesis, Group CEO of Polymetal. "I hope this high-grade project will grow through exploration and provide us with an optimal stepping stone into a new jurisdiction for Polymetal.

As а result of the issuance of consideration shares, Polymetal's share capital will comprise 423,031,984 shares. Аn application has been made to the London Stock Exchange and UKLA on the official list and consideration shares are expected to be admitted to trading on or around 20 April 2015.