RCC acquires the Tarutinskoye copper deposit
The new asset in the Chelyabinsk Region was obtained under the agreement with Polymetal in exchange for the Vostochno-Tarutinskoye deposit in Kazakhstan.
The Russian Copper Company (RCC) concluded an agreement with Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with subsidiaries, hereinafter, Polymetal) on the exchange of the Tarutinskoye deposit in Russia for the Vostochno-Tarutinskoye deposit in Kazakhstan which belongs to RCC.
As a result, Polymetal got a 85% stake in Tarutinskoye LLP which holds a license for developing the Vostochno-Tarutinskoye gold and copper ore deposit in Kazakhstan. In exchange for this, Polymetal transferred a 100% stake in LLC Vostochny Basis (which holds a license for developing the Tarutinskoye gold and copper ore deposit in the Chelyabinsk Region) to RCC.
The transaction is an exchange of assets and it does not provide for additional or deferred payment. It ensures benefits for both parties by improving logistics between deposits and the existing processing plants. The Vostochno-Tarutinskoye deposit is located on the same territory (the territory of Kazakhstan) as the processing plant of Polymetal's Varvarinskoye deposit. The Tarutinskoye deposit is located in the Chesmensky District of the Chelyabinsk Region about 30 km away from RCC's Mikheevskiy Processing Plant in the Varnenskiy District.
"The Tarutinskoye deposit gives RCC advantages such as the properties of the local ore and the fact that the deposit is close to the company's processing plants in the Chelyabinsk Region. Technologies introduced at the Mikheevskiy Processing Plant allow effective extraction of metal from ore, and the company's geographical position will allow us to optimize transportation costs," says President of RCC Vsevolod Levin.
The Vostochno-Tarutinskoye deposit (with the area of 66.4 sq. km)is located in the Karabalyksky District of the Kostanay Region and is the eastern part of the mineralization on the territory of both Russia and Kazakhstan across the border. This is the skarn gold and copper ore deposit with streaks of mineralization. Its JORC mineral resources are estimated at 6.4 million tonnes of ore containing copper (1.06%, or 68,000 tonnes) and gold (0.07 g/t, or 450 kg).
The licensed area of the Tarutinskoye deposit (1.8 sq. km) had been partly owned by Polymetal since 2013. In January 2017 the company consolidated a 100% stake in the deposit. According to the State Commission for Reserves of Commercial Minerals, its reserves are estimated at about 4.6 million tonnes of ore containing copper (1.39%, or 63,700 tonnes) and gold (0.09g/t, or 420.8 kg).