GV Gold (Vysochaishy, OJSC) gets the controlling equity stake in the Krasny project of the Swedish company Kopy Goldfields AB
GV Gold (Vysochaishy, OJSC) and Kopy Goldfields AB signed the shareholders agreement, in accordance with the terms of which the Russian company gets the controlling equity stake (51%) in the Krasny deposit development project in return for financing of the exploration program in the amount of USD 6 million. Besides Kopy Goldfields AB gets the payment of USD 1 million for covering of the current debts, and additional USD 2 million, subject to the results of exploration operations.
It is planned to complete the exploration operations within 18 months, including the time required for preparation and approval of the report, containing the reserves calculation, compliant with the GKZ requirements. It is planned that during the exploration period, the Swedish company will act as the project operator.
Resources of the Krasny deposit, which are located in the vicinity of the main producing assets of the Irkutsk project belonging to GV Gold, are estimated according to the Inferred category at 43 t (1.37 Moz) of gold. About one third of the reserves (down to the depth of 200 m) may be economically mined. GV Gold plans to carry out the accelerated infill exploration and subsequently take the deposit into commercial production.
GV Gold (Vysochaishy, OJSC) is a dynamically-developing private Russian group of gold mining companies which has a high production efficiency level — it is the