MOSCOW, Aug 31 (PRIME) — The European Bank for Reconstruction and Development (EBRD) plans to acquire 5.26% in Russian gold producer GV Gold, the bank said Wednesday.
The total cost of the deal is to amount to 1.53 billion rubles.
The stake is to be acquired from Raiffeisenbank, which acted as a financial consultant of EBRD and announced the acquisition of the stake in the gold producer on Tuesday. In particular, Raiffeisenbank acquired 2.893 million additional shares at 517.86 rubles each, or a total of 1.498 billion rubles.
The EBRD and GV Gold began negotiations sometime in MarchMay 2010.
Investments into the company are part of an ongoing EBRD strategy to support the fragmented Russian gold mining industrys competitive position by encouraging consolidation and backing those committed to developing their business in an environmentally and socially responsible way, the bank said.
Raiffeisenbank is 100%-owned by Austrian banking group Raiffeisen.
GV Golds major asset is the Golets Vysochaishy field in the Irkutsk Region. The company is the eighth largest gold producer in Russia.
(28.8569 rubles U.S. $1)