Verny Capital announce joint acquisition with KazZinc LLP

Verny Capital would like to announce the joint acquisition with KazZinc LLP acquisition of Orion Minerals, which owns the rights to subsoil use on gold fields of Raigorodok located in Akmola oblast, and Komarovskoe located in Kostanai oblast of Kazakhstan.

The acquisition amount was 30 bln tenge and shares are distributed among the partners as follows: Verny Capital – 10.5%, KazZinc LLP – 89.5%. At present, permissions have been obtained from the state regulatory bodies.

Aggregate reserves of the fields are estimated at 80 tons. There is also the potential of finding new geological reserves after conducting additional exploration operations in the future. The new owners intend to implement an investment program aimed at the further industrial development of the fields. In particular, options of local processing of primary ore with construction of a processing complex are being studied at Komarovskoe field, and supplementary exploration of the field along with extension of the current production facilities will be the starting priority at Raigorodok field.

Timur Isataev, Chairman of the Board of Directors of Verny Capital gave his comment on the accqusition: “Verny Capital has an extensive expertise in the implementation of successful investment projects in various areas and five-year’s experience of Vasilkovskiy MPC and KazZinc. Our company understands the needs of the enterprise itself, as well as the needs of the fields. KazZinc is actively developing, the enterprise needs to extend its resources base. On the other hand, fields need investors and standing ore processors for development. Thus, it will be a mutually beneficial transaction.”

Erlan Ospanov, the Director General of Verny Group of companies noted: “We acted as the professional facilitator of the transaction; we saw this business opportunity and brought together interested particpants. Our company has organized, structured and led this transaction “turnkey”. We have involved a partner – KazZinc which is interested in the strengthening of the resource base and provision of ore to its gold-mining subdivision Altyntau Resources JSC.