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ARMZ Uranium Holding Co. acquires 99.5% stake in JSC First Ore-Mining Company
ARMZ Uranium Holding Co. has purchased a 99.5% stake in JSC First Ore-Mining Company for $30 mln. The transaction has been closed on November 16, 2012.
JSC First Ore-Mining Company holds a licence for the development of the Pavlovskoye lead-zinc deposit (located on the Novaya Zemlya archipelago) which ranks among the world’s five largest deposits with its mineral resources of 9.5 mln. tonnes of ore (reserves C1+C2 and inferred resources P1+P2).
Along with the development of ore-mining activities, the Strategy of ARMZ Uranium Holding Co. includes diversification of business operations with the segments of strategic and innovative metals. The acquisition of JSC First Ore-Mining Company is an important milestone within this direction, claims Tigran Khachaturov, the acting Director General of JSC Atomredmetzoloto.
The Pavlovskoye deposit development project involves construction of an ore mining and processing industrial facility with the production capacity of 2.5 mln. tonnes of ore per year. Timeframe for the commencement of production activities will be defined upon the completion of geological exploration work in 2013 and preparation of project documentation by the end of 2016.