Thursday, March 14 2019 20:11

ArmInfo. For the first time in  the mining industry of Armenia, the transaction of buying shares of a  large enterprise was financed with the credit support of commercial  banks, which collectively provided $ 40 million to the investor. 

According to ArmInfo in Ameriabank, the bank that initiated this  syndicated loan allocated $ 32 million. in the CIS markets, Chaarat  Gold, which acquired the Kapansky GOK from Polymetal. The total  amount of the transaction was $ 55 million.Recall that at the end of  January 2019, the former owner of Kapan GOK <Polymetal> officially  announced the completion of the transaction for the sale of its  Armenian gold- bearing asset Chaarat Gold.The head of the Ameriabank  Corporate Investment Operations Department Gagik Sahakyan noted that  with this step the Armenian banks proved to the international  financial community that they possess the financial resources  necessary to carry out such complex transactions, and also confirmed  their ability to rally in the implementation of international  operations of such scale.

 In addition, this deal proved the attractiveness of the Armenian  economy for international capital and investments ", noted"We are  pleased that this deal became the first major foreign investor of the  post- revolutionary period. In the culture, strategy and activities  of our company, environmental protection, social and corporate  governance play an important role. This is in line with the  principles established for ensuring transparency of business  activities in Armenia. Armenia gives this is a great opportunity for  us, "said Artem Volynets, Director General of the gold mining company  Chaarat Gold.

Note that on March 13 of this year. and about. Minister of Energy and  Natural Resources of the Republic of Armenia Garegin Bagramyan  discussed with Artem Volynets the details of the investment program  of the Kapan Mining and Processing Plant The head of the company  assured that one of the company's priorities is to conduct mining  operations based on the best international standards and ensure  transparency. It is expected that the replacement of handmade with  new technologies will increase the productivity and safety of the  mine. 

The water use system will operate in a closed loop without harming  the environment. The general director of Chaarat Gold noted that in  the near future the company will submit to the ministry adjustments  that will be made to the mining project and to the waste management  plan.We note that Polymetal acquired Kapan in 2016. for $ 38 million  from Canadian investors. The reserves, production and EBITDA of the  field accounted for only 3% of Polymetal's overall performance, and  therefore, according to Russian analysts, it decided to sell the  company. According to the company, production at the field for the 12  financial months ended September 30, 2018 was 51,000 ounces of gold  equivalent.Until recently, Chaarat Gold was engaged in the  exploration and development of gold deposits only in Kyrgyzstan. But  within five years, the company plans, through mergers and  acquisitions, to supplement assets in the CIS and Central Asia and to  achieve a production level of 1 million ounces, and a resource base  of 15-20 million ounces. 

The largest shareholder in Chaarat Gold is its chairman, Martin  Anderson (35.5%). The list of shareholders also includes China State  Nonferrous International Mining Co. Ltd (CNIMC, 6.05%), Sarastro  Group Limited with BVI (4.74%), UBS (3.9%) and management (3.12%).  Since 2007, Chaarat shares are traded on the LSE site with a  capitalization of $ 114.6 million. Artem Volynets headed the company  in the summer of 2018, he is the former En + CEO, owned by Oleg  Deripaska.Recall that Ameriabank is a dynamically developing bank in  Armenia, one of the largest and most stable financial institutions in  the country. Today, Ameriabank is a universal bank providing a full  package of corporate, investment and retail banking services, and the  leader of the banking sector of Armenia in terms of its main  financial indicators (assets, liabilities, loan portfolio, net profit  and capital - ArmInfo). The Bank has been operating in the Armenian  market since October 31, 1996. The shareholders of Ameribank are:  Ameria Group CY Ltd. - 56.6%, EBRD - 17.8%, Asian Development Bank  (ADB) - 13.98% and ESPS Holding Limited - 11.62%. The Bank is  annually awarded distinctive awards from Euromoney, from Global  Finance, from The Banker / FT, from Commerzbank. Ameriabank is the  only organization in Armenia with credit ratings of three agencies: S  & P (B +, with a "Stable" outlook), Moody's (B1, with a "Positive")  and Fitch (B +, with "Stable") forecasts.