KazakhGold, controlled by Russia’s top gold miner Polyus Gold, said late on Monday its $509 million deal to sell some of its assets in Kazakhstan to the Assaubayev family had been put on hold over financing problems.
KazakhGold said that the Assaubayevs’ AltynGroup had failed to raise the required amount of money to finance the first stage of the deal.
“KazakhGold notes that AltynGroup did not manage to raise the required financing prior to the first tranche cut-off date,” Polyus Gold said in a statement.
KazakhGold said, however, it is still in discussions with the Assaubayev family on ways to ensure the deal goes through.
“As a result of the termination of the principal agreement, including its exclusivity provisions, the board of directors intends to explore other opportunities with respect to the sale of the company’s assets in Kazakhstan,” the company said in a statement.
In November, Polyus Gold agreed to sell KazakhGold’s production assets to the Assaubayev family, settling a long-running dispute between the two sides.
MOSCOW, March 15 (RIA Novosti)