OREANDA-NEWS. Kazakhmys PLC (or the 'Group') announces that it has concluded the agreement for the purchase of Koksay from CCC Mining Construction B.V., an unrelated private company. First announced on 27 February 2014, Koksay will be the Group's third major growth project. Completion is subject to Government of Kazakhstan and regulatory approvals.

As previously announced, the net acquisition cost will be USD 260 million in cash, of which USD 65 million is deferred. Of the deferred consideration, USD 30 million is payable on 1 January 2015 and USD 35 million on 31 July 2015. The latter is subject to confirmation of reserves.

The Koksay deposit is in south eastern Kazakhstan around 234 kilometres from Almaty and is well located for existing infrastructure. The mine has a total resource of approximately 3.4 MT of copper, with an average grade of 0.48%. There are by-products of gold, silver and molybdenum.

The project is at scoping stage and has an estimated mine life of over 20 years with average annual production of around 80 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate.

Oleg Novachuk, Chief Executive said: "We are delighted to have secured Koksay, which will provide long-term growth beyond our existing projects of Bozshakol and Aktogay. The acquisition is in keeping with our strategy of production dominated by low cost, open pit, long life mines. Koksay will provide a sound return for shareholders, and local benefit through employment and economic growth".