OREANDA-NEWS. September 18, 2014. Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries Polymetal, the Company, or the Group) announces the acquisition of 100% ownership in the North Kaluga property following the restructuring of the Ural-Polymetal JV.

Under the terms of the restructuring agreement, the Ural-Polymetal JV was dissolved and the asset and liabilities of the JV were distributed amongst the joint venture partners. Polymetal received a 100% interest in the North Kaluga property and assumed USD20 million of debt.

The other assets and liabilities of the JV were transferred to the other joint venture partners. Polymetal owned 49.99% of the Ural-Polymetal JV prior to the transaction and the asset had nil carrying value in the Group's financial statements due to write-off in 2013 following the commodities price decline.

"We continue to invest in assets that can provide high-grade life-of-mine extensions to our operating mines", - said Vitaly Nesis, CEO of Polymetal.

ASSET DESCRIPTION
North Kaluga is located in the Sverdlovsk region of Russia, approximately 150 km from the Voro mine and 3 km from the federal highway.

The deposit was discovered in the 1950, with exploration drilling undertaken by the JV partners from 2011 onwards. A total of 43 holes were drilled (2,435 m), indicating that the ore bodies have sharply defined boundaries and are on average 6-12m wide.

Polymetal Engineering performed a JORC-compliant ore reserve estimate for the North Kaluga open pit. The results of the reserve estimate are summarised in the table below.