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Polymetal has exchanged convertible notes linked to the sale of a mine to Chaarat Gold into equity, with the FTSE 250 miner now taking a 3.5% stake in AIM-listed Chaarat.
Polymetal has agreed to exchange the $10m of Chaarat's convertible notes received as part of the January 2019 sale of the Kapan mine in Armenia to Chaarat Gold.
'Exchange of convertibles into Chaarat stock, working capital settlement, and release of warranties and indemnities ensure Polymetal's direct exposure to Chaarat's performance while limiting legacy jurisdictional risks,' said Vitaly Nesis, group CEO of Polymetal.
As part of the deal, Chaarat has agreed to waive its exclusivity right and right of first refusal for Lichkvaz, Polymetal's remaining asset in Armenia.
Polymetal said this will pave the way for involving other interested parties into the ongoing sale process for Lichkvaz.
At 8:26am:
(LON:CGH) Chaarat Gold Holdings Ltd share price was -0.3p at 29.5p
(LON:POLY) Polymetal International PLC share price was +8.5p at 1010p