Polymetal settles Kyzyl put option

Polymetal International has agreed to settle the Kyzyl put option with Sumeru Gold, removing uncertainty from the company's capital.

The net consideration for the put option is $68m (£43.9m).

The put option arose from Polymetal’s acquisition of Altynalmas Gold, the holding company for the Kyzyl gold project in Kazakhstan.

The company will settle the full contractual put option liability to Sumeru and deliver a cash payment of $300m (£193.9m).

Polymetal group chief executive Vitaly Nesis believe the net settlement of the put option is the best outcome for Polymetal and its shareholders given the current market conditions.

"We are removing the uncertainty from the company's capital structure and strengthening the balance sheet," he said.

“Net settlement significantly increases the likelihood of a meaningful special dividend for the current year whilst ensuring adequate liquidity for the development of the Kyzyl project."