MOSCOW--(BUSINESS WIRE)-- Norilsk Nickel Australia Pty Ltd, a subsidiary of OJSC Norilsk Nickel (“Norilsk Nickel”), has entered into a definitive agreement to sell its North Eastern Goldfields Operations in Western Australia (“NEGO”) to Saracen Metals Pty Ltd (“Saracen”), a wholly owned subsidiary of the Saracen Mineral Holdings Limited a company listed on the Australian Securities Exchange.
The North Eastern Goldfields Operations in Western Australia include the open pit Thunderbox gold mine and processing facility (together “the Assets”) and are a part of Norilsk Nickel’s Australian operations earmarked for the disposal by Norilsk as it continues to implement its new strategy announced in October 2013.
Consideration payable by Saracen to Norilsk Nickel will include upfront and deferred cash components and a royalty upon the commencement of production, with a total aggregate value of up to A$40 million.
In addition, Saracen will assume all environmental rehabilitation obligations related to the Assets.
The sale is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to close in the first half of 2014.
ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of MMC Norilsk Nickel’s group in Russia are at the Taimyr and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, Australia, Botswana and South Africa. MMC Norilsk Nickel’s shares are traded on the Moscow Exchange. ADR’s representing shares in MMC Norilsk Nickel are traded on the over the counter market in the US and on the London and Berlin stock exchanges.
Forward looking statements
This announcement may contain "forward-looking statements" concerning Norilsk Nickel. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to business and management strategies and the expansion and growth of Norilsk Nickel’s operations. Many of these risks and uncertainties relate to factors that are beyond Norilsk Nickel’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Norilsk Nickel’s assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.
Source: Norilsk Nickel