Russian precious metals company Polimetall has acquired the remaining 20 percent of Magadan Silver
Russian precious metals company Polimetall has acquired the remaining 20 percent of Magadan Silver from Canadian firm Pan American Silver. Now Polimetall fully owns Magadan.
Magadan owns the rights to the Dukat gold and silver deposits in Russia's Far East, including 14,810 tonnes of silver -- the world's No.3 reserve -- as well as 30.7 tonnes of gold.
Polimetall, said it paid Pan American $43 million for the stake.
It paid $20.5 million in cash and will pay the rest in yearly tranches. The size of the yearly payments depends on the average silver price for the year, ranging from zero for an average below $5.50 an ounce to $8 million if prices exceed $10.
Polimetall will also pay the entire remainder if it makes an initial public offering (IPO) of its shares to the market.