Kazakhstan Chamber of Commerce in the USA


Polyus Gold extends first tranche deadline for the Assaubayevs

Posted on October 21, 2011 by Alex

Russia’s gold miner Polyus Gold International said on Friday it had agreed to extend for the second time  the payment deadline in a planned deal in which Kazakhstan’s AltynGroup would acquire some of Polyus’ production assets in Kazakhstan.

In April, Polyus and AltynGroup reached an agreement on the sale of production assets formerly held by KazakhGold, a Kazakh gold producer earlier acquired by Polyus,  in which the Russian gold miner agreed to sell the assets for $509 million.

Prior to the agreement, the two sides were engaged in a  long dispute following Polyus’ acquisition of KazakhGold  in 2009  which had been controlled by AltynGroup’s largest shareholders, the Assaubayev family.

Under the deal reached in April, the Assaubayevs agreed to buy controlling stakes in KazakhGold’s producing companies  for $260 million  payable by September 12 and then acquire the remaining stakes for $249 million by the end of 2012.

SOURCE: SRI, Kazakhstan Daily News Brief as of October 17, 2011

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