Largest Russian gold producer in Romania sells assets for USD 20 mln to Kazakh SAT & Company

Polyus Gold, the largest gold producer in Russia, controlled by billionaire Mikhail Prokhorov and Suleiman Kerimov, sold off assets in Romania, including a gold treatment plant and three exploration licenses in the county of Maramures, to Kazakh company SAT & Company, for USD 20 mln.

The assets will be sold to another holding company, registered in the Virgin Islands, controlled by SAT & Company, said Polyus in a press release. SAT & Company is a holding company specialized in attracting funding and development of metallurgical and mining companies.

Kazakh SAT & Company, llisted on the stock from Almaty, is controlled by businessman Kenes RakiÅŸev, son in low of the mayor of Astana, Imangali Tasmagambetov, a close friend of President Nursultan Nazarbayev. The ransaction should be completed in the second quarter of this year.

Romaltyn Mining holds in Baia Mare a gold ore treatment plant with an annual capacity of 2.5 million tonnes, but is not operational.

Polyus assets in Romania are held by companies Romaltyn Mining and Romaltyn Exploration, controlled by Romaltyn Holding Limited, registered in the Isle of Man. Mikhail Prokhorov is ranked third in the presidential elections in Russia, won in March by Vladimir Putin.

Romaltyn Exploration has three exploration licenses in the county of Maramures.

Polyus Gold was in the first quarter sales of USD 587 mln, up by 52 percent compared to the corresponding period last year due to the appreciation of gold quotations, but also increases production. Polyus has a market value of about USD 9.6 bln, according to Reuters, and has high potential gold reserves in far eastern Russia. The group sold 345,000 ounces of gold (about 10.7 tons) in Q1, up 24%, at an average price of $ 1,702 per ounce, up by 23%.