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Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is pleased to announce that the USD 2 million conditional consideration payment has been received from GV Gold for the Krasny project following the statutory approval of the Russian Mineral Reserve report ("GKZ report") of 9,767 kg of gold (314 koz) under the C2 category.
This USD 2 million additional consideration payment represents the final payment by GV Gold for the 51% interest in the Krasny project under the Shareholders agreement signed between Kopy Goldfields and GV Gold on July 10, 2014. The final payment was conditional upon achieving outstanding exploration results from the Stage 1 and Stage 2 activities during 2014-2015, on the Krasny project. The payment was due only if, firstly, the statutory approved gold reserves of C1+C2 categories under Russian reserve classification exceeded 9 tons, and secondly, the exploration was done efficiently; neither budget nor timing of the exploration program being breached.
The GKZ report for the Krasny deposit was prepared in accordance with the Russian Statutory Reserve Committee ("GKZ") reporting regulations by an independent engineering consultancy firm, based in Irkutsk. The report was commenced in July 2015, and filed with the GKZ authorities in Irkutsk on December 28, 2015.
It is important to consider that the GKZ report is based on the drilling data acquired before January 1, 2015, which means that the recent data from the Stage 2 and expansion drilling operations was not included into the report, since this would have significantly delayed the reporting process. The drilling data from the Stage 2 drilling, expansion drilling and new explorations in 2016 will be used for updating and revising the current GKZ report in the future. It is likely that the new data will improve the GKZ report further.
On March 30, 2016, the report was finally formally approved by the Federal Agency on Subsoil Usage (subsidiary of the Russian Ministry on Natural Resources) in Krasnoyarsk. The Report classifies the Krasny mineralization to be a deposit with total ore reserves under the C2 category of 6,317 ktons with an average grade of 1.55 gr/t, which makes 9,767 kg of gold (314 koz). The report recommends the deposit for pilot gold production.
Mikhail Damrin, CEO of Kopy Goldfields, comments the news: "I am very happy with this development. This final payment is the latest and most solid evidence that the Krasny project will eventually become a mine. I am proud of both the strong results from the Krasny project and of our management team who effectively run the recent exploration program. The Krasny mineralization has now become a new gold deposit that we will later find on the new maps of mineral resources in Russia. This is something very unusual, and the majority of exploration companies never achieve that in their total life. During 2016, we plan for an extensive development program for Krasny, focused on Feasibility studies for the Upper ore bodies and explorations for the Lower ore bodies. By the end of the year we will finalize the Feasibility studies and proceed to construction permitting for the mine development targeting to commence actual construction activities in 2017."
Stockholm, April 26, 2016
For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, +46 702 31 87 01, tim.carlsson@kopygoldfields.com
The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2016-04-26 English.pdf
Kopy Goldfields Pressrelease 2016-04-26 Swedish.pdf
About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The company holds 11 bedrock exploration- and production licenses and one alluvial license covering in total 1,963 sq km, of which the Krasny licenses (bedrock and alluvial) are held 49% by the company. The preliminary forecast is to be in production in 2018. The target for Kopy Goldfields is to become a near-term gold producer in cooperation with a producing partner under JV agreement.
Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Aqurat Fondkommission acts as Certified Adviser, contact number: +46-8-684 05 800.
The Share
Ticker: KOPY
http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457
Outstanding shares: 59,899,541
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