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. Last Updated: 07/27/2016

Polymetal Buys Gold Deposit From Highland

Polymetal, Russia's largest silver producer, said Wednesday that it bought the Maiskoye gold deposit from Highland Gold Mining with a group of Russian investors for a total of $105 million.

Polymetal acquired a 9 percent stake in Zolotorudnaya Kompaniya Maiskoye and will buy the remainder from the investor group after getting regulatory approval, said the company, without identifying the investors. Polymetal and its partners agreed to contribute $105 million to Maiskoye's share capital, which will be used to pay off debt, the company said.

"It's a great deal for both companies," Mikhail Stiskin, analyst with Troika Dialog, said in an e-mailed comment. "Highland was lacking the funds and, most important, the operational capacity to develop the deposit. Polymetal has the expertise required and will also realize the synergies with its other Far East assets."