OREANDA-NEWS. Polymetal International plc has purchased a 100% interest in the company holding the licence for the Primorskoye silver-gold property located in the Magadan region of Russia from Decamor Investments Limited.

The consideration for the acquisition comprises:
* initial consideration of USD 4.5 million payable by issuing 533,301 new Company shares 0.1% of Polymetal's increased ordinary share capital) .
* deferred conditional cash consideration, with the exact amount based on the audited reserve estimate and equal to of USD 13,333 per tonne of contained silver equivalent (translating into USD 0.415 per silver equivalent ounce).

Polymetal intends to complete at least 15 km of exploration drilling before 30 September 2016 and plans to obtain an audited JORC-compliant reserve estimate under the JORC standard and pay the deferred consideration before 31 December 2016. The audit of the reserve estimate will be undertaken by a recognised independent international consultant.

Primorskoye is located in the Omsukchan district in the Magadan region, 215 km from Polymetal's Omsukchan concentrator and 15 km from the Sea of Okhotsk. The licence area is remote with access limited to four months of winter road (Jan-Apr) and 4 months of summer navigation (Jun-Sept).

The current statutory Russian resource report (not compliant with the JORC Code) estimates in situ mineralised material of 500 kt at the average grade of 987 g/t silver and 5.8 g/t gold (no top cut applied) for approximately 16 Moz silver and 100 Koz gold contained. Mineralisation is conceptually suitable for underground mining.

Veins and veinlets occur within the volcanic fault and are composed of free-milling quartz associated with carbonate, manganese, and rhodonite. Only 10 km2 out of the 58.7 km2 licence area has been meaningfully explored.

"I am pleased to report that we have expanded our portfolio of near-mine advanced exploration projects" - said Vitaly Nesis, Group CEO of Polymetal. - "We hope to add within two years high-grade reserves within the economic transportation distance from both the Omsukchan concentrator and the Khakanja processing plant".

As а result of the issuance of consideration shares, Polymetal's share capital will comprise 423,565,285 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 14 July 2015.