OREANDA-NEWS. Polymetal International plc is pleased to announce that it has entered into binding agreements with Dundee Precious Metals Inc. (TSX:DPM) (together with its subsidiaries - "Dundee") for the acquisition of CJSC Dundee Precious Metals Kapan ("DPMK"), the holding company for the Kapan Gold Mine ("Kapan") in the Republic of Armenia (the "Acquisition").

The Kapan property is located in the south-eastern Armenia, 320 kilometres from the capital city of Yerevan. The area surrounding the operation hosts a number of other prospective deposits, including the Lichkvaz gold deposit recently acquired by Polymetal and located approximately 70km from Kapan.

As of 31 December 2014, NI 43-101 compliant Indicated and Inferred resource was estimated at 15.9Mt containing approximately 1.4 Moz of gold, 24 Moz of silver, 80 Kt of copper and 270 Kt of zinc (2.6 Moz gold equivalent at 5.1 g/t GE)1.

The asset comprises a fully mechanised underground mine with a current capacity of approximately 400 ktpa, a conventional 750 ktpa flotation concentrator and various infrastructure facilities. The mine produces gold-copper-silver and zinc concentrates sold to international markets. More than US$ 75 million has been invested in Kapan over the last five years.

In 2015, Kapan mined 410 Kt and processed 411 Kt of ore. 21 Koz of gold, 1 Kt of copper, 5 Kt of zinc and 0.4 Moz of silver were sold during 2015. Over the same period, Kapan recorded net revenue of USD 35 million with EBITDA of USD 5 million and cash costs, net-of-product, of USD 709 per ounce of gold sold.