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. Last Updated: 07/27/2016

GV Gold Valued at Up to $515M

GV Gold, the country's eighth-largest gold miner, on Monday set an offer price for a planned share float that values the company at $428 million to $515 million.

GV Gold set an offer price of $85.5 to $103 per share and $8.55 to $10.30 per global depositary receipt for the initial public offering planned next month in London and Moscow. Credit Suisse is the sole global coordinator and bookrunner for the IPO.

GV Gold said shares would be sold by existing shareholders and the company would issue an additional 209,000 new shares. It said it intended to use the IPO proceeds to fund a capital spending program and for general corporate purposes.

Six Russians, including chairman Sergei Dokuchayev and CEO Sergei Vasilyev, own more than 90 percent of GV Gold, which last year produced 2.7 tons (86,967 ounces) of gold at its Golets Vysochaishy mine in the Irkutsk region in eastern Siberia.

GV Gold was founded in 1998 by Lenzoloto -- now part of Russia's largest gold miner, Polyus Gold -- and Lanta-Bank, a commercial bank active in the precious metals market.

The company plans to raise gold output to 5 tons by 2009.