Kopy Goldfields AB (publ), has filed an application to return Verkhnyaya Orlovka and Purpolskaya exploration licenses, thereby reducing exploration and administration costs.
In response to the current crisis on the gold market and in the mining sector in general, Kopy Goldfields has reviewed and reduced overall administration costs and exploration expenditures. All exploration projects have been reviewed on a merit basis and two licenses were identified not to fit the asset portfolio. Consequently, Kopy Goldfields has decided to return the Verkhnyaya Orlovka and Purpolskaya exploration licenses (see Appendix 1 for location of the properties) to the Russian state, which will affect the cash flow by reducing exploration expenditures and expenditures related to license obligations. The two licenses were acquired in 2012 and in spite of good exploration potential; both are at a very early exploration stage and would require significant time and funds to be ready for production or farm out. This divestment leaves the company with a well diversified portfolio of 13 licenses in different stages of exploration.
The return of the licenses is not expected to have any negative impact on the cash flow, but implies a write down of the capitalized acquisition and exploration costs of approximately SEK 4.9 million. This will be accounted for in Q2 2013.
Mikhail Damrin, CEO of Kopy Goldfields, comments the news:
- With the return of these properties, we reduce the greenfield part of our license portfolio and make it more balanced towards advanced exploration and closer to production. We however do not exclude the exploration blue sky potential since we keep the six exploration properties we acquired in December 2012 which combine 1,852 km2 of highly prospective ground with compact location in the Northern part of Lena Goldfields.
For the complete press release including tables, images and maps see attached document.
För pressmeddelande på svenska se bifogat dokument (Swedish).
Stockholm, August 16, 2013
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 2013-08-16 (English).pdf
Kopy Goldfields Pressrelease 2013-08-16 (Swedish).pdf
About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ OMX 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 major owner is Eldorado Gold Corp. The company holds 100% of 15 bedrock exploration- and production licenses on 2,338 sq km. The target for Kopy Goldfields is to create value by identifying and acquiring high potential gold projects, prospect and explore them until the stage when it can be either sold out for cash or developed in cooperation with another 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
www.nasdaqomxnordic.com/firstnorth/
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