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Gazprombank Buys 51% of Gold Deposit
The Canadian company Fortress Minerals, which owns the major Svetloe gold deposit, has found a partner for its gold production in Russia. Gazprombank has obtained an option good through the end of the year to buy a controlling package of 51 percent of the shares in Fortress subsidiary Svetloe Gold Corp. for $47.7 million. The Svetloe deposit is located in Khabarovsk Territory. The companies plan to work together on other gold deposits as well, and may participate in the auction to develop the Sukhoi Log deposit, the world's largest.
Fortress does not now own the other 49 percent of the Svetloe deposit, but it has reached an agreement with the Freeport Co. to but those shares for $8 million plus 4 million of its own shares. Fortress Minerals Crop. is a subsidiary of the Lundin group. Its stock is traded on the Toronto Stock Exchange. Its capitalization is $119 million and the license to develop Svetloe is its main asset. It is conducting geological exploration in Mongolia and Nicaragua as well.
Gazprombank is a newcomer to gold mining. It began to take interest mining last year and is now working on the acquisition of the 49-percent share of Mongolian Erdenet copper and molybdenum producer that belongs to Russia. Fortress began searching for a partner last year as well. It expects to have the license to Svetloe within months. A Russian state commission has confirmed reserves of 6.8 tons of gold at the deposit. Russian legislation allows foreign companies access to strategic mineral deposits only in a joint venture controlled by the Russian partner. Fortress, in partnership with Gazprombank, thus qualifies to compete for Sukhoi Log now.
www.kommersant.com
All the Article in Russian as of Apr. 11, 2008
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