Polymetal sells Sopka assets for $10m

Gold miner Polymetal said it had sold its Sopka assets to an unnamed Russian private buyer for $10m.

Sopka, along with other non-core assets, was part of Polymetal's Omolon hub in the Magadan region of Russia. Mining stopped in 2018 and all of the remaining high-grade ore had been sent to its Kubaka mill for processing., the company said in a statement.

Polymetal will also received a 1% net smelter return if the gold price exceeds $1,500 per ounce, with royalties capped at $50m.

Additionally, if the average gold price in 2022 exceeded $1,600/oz, the buyer would be required to compensate for any positive foreign exchange difference between the US dollar values of the rouble fixed cash payment made at between the end of December 2022 and January 30, 2020.