Bryan Cave Leighton Paisner acts as legal consultant in Russia for Kopy Goldfields AB (publ) in connection with its acquisition of 100% of the shares in Amur Gold Company Limited
Bryan Cave Leighton Paisner, formerly Goltsblat BLP in Russia, is acting as a legal consultant in Russia for Kopy Goldfields AB (publ) ("Kopy Goldfields”) in connection with its entry into a conditional agreement with HC Alliance Mining Group Ltd. (“HCAM”) and Lexor Group SA (“Lexor” and, together with HCAM, the “AZ Shareholders”) under which Kopy Goldfields is to acquire 100 per cent of the shares in Amur Gold Company Limited (“Amur Zoloto”), a medium-sized gold producing company based in Russia, through a reverse takeover.
The transaction is structured as a contribution in kind with the AZ Shareholders contributing 100 per cent of the shares in Amur Zoloto in exchange for shares in Kopy Goldfields.
Kopy Goldfields and Amur Zoloto believe the transaction presents shareholders in Kopy Goldfields and Amur Zoloto with a unique opportunity to benefit from the significant value accretion arising from their combined asset and project portfolios. The combined company will be positioned to deliver a strong production growth profile and exploration opportunities, making it a leading Stockholm-listed gold exploration and production company.
The BCLP project team is led by Partner and Head of Corporate / M&A (Russia) Anton Sitnikov and Counsel Nikolay Kholshev and includes: Senior Associate Anastasia Kudryashova and Junior Associate Anastasia Buryak (Corporate / M&A), Counsels Ekaterina Verle and Inna Firsova, Associate Victoria Malashenkova and Junior Associate Olga Yarunina (Real Estate & Construction).
Mikhail Damrin, CEO of Kopy Goldfields, commented: “We are glad to be supported in Russia by our long time legal partner – the counsel you can count on – BCLP, including in particular Anton Sitnikov and Nikolay Kholshev leading the team.”
Kopy Goldfields, listed on Nasdaq First North, is a Swedish gold exploration company operating in Russia’s Irkutsk and Amur Regions, which are two of the richest gold areas in the world. Kopy Goldfields has 0.126 Moz of Proved and Probable Reserves and M,I&I Resources of 0.9 Moz reported in accordance with JORC. The Company currently holds 12 licences, grouped into four projects, entitling it to explore for and produce gold. Historically, Kopy Goldfields' strategy has been to create value by identifying and acquiring high potential gold projects and then prospecting and exploring them until they reach the stage of being ready to be sold for cash or further developed in cooperation with a partner. Following the Transaction, the company becomes a medium-sized gold producer with ambitious growth targets.
Kopy Goldfields’ most advanced project to date is the Krasny project, where exploration has been under way since 2010, when the project was acquired from the Russian state through a competitive public auction. In 2014, a joint venture agreement to develop this promising gold deposit jointly was signed with the Russian gold producer GV Gold . The project is currently in the prefeasibility stage, with an updated reserves and resources estimate under preparation. www.kopygoldfields.com
About Amur Zoloto
Amur Zoloto is a medium-sized gold producing company based in Russia with assets in the Ayano-Maisjky District of the Khabarovsk Region and is wholly owned by the AZ Shareholders. The mineral asset base of Amur Zoloto consists of a number of operating gold mines and assets under development (both hard rock and alluvial) with Proved and Probable Reserves of 0.98 Moz and M,I&I Resources of 1.42 Moz. Gold production in 2019 amounted to 52 koz at a total cash cost of USD 802/oz an and all-sustaining cash cost of USD 1,030. Over January-April 2020, Amur Zoloto produced 422 kg of gold (equivalent of 13.6 koz).
Over 2015-2019, the Company successfully developed a number of mines, this leading to an increase in production from 21 koz of gold in 2015 to 52 koz in 2019, with a gradual expansion of the reserve base. Most recently, the company commissioned a new processing line with an annual capacity of 130 kt of ore at the Yubileiny plant and plans to commission a heap leaching plant within its Perevalnoye mine to process low-grade ore.
Given the portfolio of the company’s exploration and development projects, Amur Zoloto is set to increase gold production organically. www.amur-gold.ru
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