Verny Capital announced today the successful completion of a sales transaction of a 35% ownership stake in a company, which 100%-owns the gold producing company RG Gold and a recently established project company RG Processing (jointly referred to as the “RG Gold Project”, the “Project” or the “Company”). The new investor who entered this promising gold project is a mining-focused US-based private equity fund - Resource Capital Fund VII L.P., which belongs to the leading group of commonly managed private equity funds Resource Capital Funds (“RCF”), run by leading industry professionals with strong mining experience.
This investment is a significant partnership commitment of one of the largest mining-focused US funds, which marks a key milestone in the development of the RG Gold Project on achieving its high growth potential. This transaction is in line with Verny Capital’s active involvement in strategic and operational management of its portfolio companies. Since entering the Project in 2013, the Company invested more than 4.4 billion KZT (15.7 million US dollars) on geological exploration by completing more than 140km of core drilling. As a result, the Company’s reserves increased threefold (from 34 tonnes in 2014 to 107.8 tonnes in 2018) in accordance with the State Reserves Committee (GKZ) standards. JORC compliant reserves and resources are estimated at 100 tonnes and 185 tonnes, correspondingly. More than 11 billion KZT (44 million US dollars) were invested into the construction of the existing heap-leach production facilities and infrastructure development, which provides nearly 700 job positions. Being a responsible producer, the Company is actively engaged in local community by completing social projects with a total value of 220 million KZT (830 thousand US dollars) to date.
With the partnership of a global mining investment fund on board, the next Project milestone is construction and commissioning of a new gold processing plant by 2022, with an annual capacity of 5 mln tonnes of ore. The new plant will employ CIL technology to process primary ore to uncover this Project’s true value. RCF’s timely and in-depth involvement will ensure access to the most advanced mining and processing technologies in order to achieve the highest production efficiency while implementing world-class environmental protection standards.
Partnering with a strong foreign investor is a landmark achievement for the development of the region, which will have a significant contribution to the growth of Kazakhstan’s economy.