News

Polyus Gold and KazakhGold Comment on Recent Media Speculation

Polyus Gold and KazakhGold have noted recent media speculation surrounding the original agreement for Polyus to acquire a 50.1% stake in KazakhGold.

This agreed transaction was publicly announced to the London Stock Exchange in June 2009 and a full circular setting out all the terms and conditions was posted to KazakhGold shareholders and all the related materials were publically available. The Partial Offer, which was governed by English law, was reviewed by regulators in several countries and received all necessary approvals. The acquisition was unanimously approved by the KazakhGold Board of Directors, including the representatives of the Assuabayev family.

The acquisition by Polyus Gold of a 50.1% stake in KazakhGold was approved overwhelming by KazakhGold shareholders. Over 96% of KazakhGold shareholders voted to support the transaction, including the Assaubayev family. The Assaubayev family were responsible for obtaining the waivers from the relevant governmental agencies in Kazakhstan of their preemptive rights under the Kazakh subsoil laws. 

Kanat Assaubayev, as Executive Chairman of the Board of KazakhGold, confirmed in the official shareholder circular that Polyus Gold had received all necessary government and regulatory approvals in Kazakhstan to acquire its 50.1% stake in KazakhGold and prior to commencement of the transaction Aidar Assaubayev, for and on behalf of the Company, gave written assurances to Polyus Gold that there were no reasons that would indicate that the approvals are not valid.

Since the original transaction, under which Polyus Gold became Guarantor of KazakhGold’s $200 million Senior Notes due 2013, Polyus Gold has provided two $50 million shareholder loans to support KazakhGold financially.  Polyus Gold has also provided management and production assistance to KazakhGold, helping to increase production by 50%.

Polyus Gold is committed to developing KazakhGold’s assets, providing new investment and securing production and jobs in Kazakhstan.

“The agreement for Polyus to acquire a major shareholding in KazakhGold was open, transparent and in the interests of all shareholders. The Assaubayev family supported the transaction, with Kanat Assaubayev confirming that they had received all necessary approvals in Kazakhstan and voted in favour of the deal at the shareholders meeting.

 “The combination of KazakhGold and Polyus Gold will create the leading CIS gold producer, provide fresh investment in Kazakstan and secure jobs and production.”

OJSC Polyus Gold is an international company, Russia’s leading gold producer and one of the world’s largest gold mining companies in terms of market capitalization, mineral reserves base and output. The Company’s international asset portfolio includes ore and alluvial deposits in the Krasnoyarsk Territory, the Irkutsk, Magadan and Amur Regions, the Republic of Sakha (Yakutia), as well as in the Republic of Kazakhstan and Romania. Gold production of OJSC Polyus Gold totaled 1,3 k oz in 2009.

For further information please contact:
Anton A. Arens, PR Director
+7 (495) 641-3365
+7 (495) 544-5496
pr@polyusgold.com
Alexey V. Chernushkin, Director, CM and IR
Evguenia V.Buydina, IR manager
+7 (495) 641-3377
+7 (495) 785-4031
 ir@polyusgold.com