Polyus Gold International Ltd Corporate Update (3176G)

TIDMPGIL

RNS Number : 3176G

Polyus Gold International Ltd

19 November 2015

For immediate release 19 November 2015

Polyus Gold International Limited

Corporate Update

Polyus Gold International Limited (LSE and MOEX - PGIL) ("PGIL", "Polyus Gold" or the "Group"), the largest gold producer in Russia, provides the following update regarding the further development of the Group.

As previously announced by Wandle Holdings Limited and its wholly owned subsidiary Sacturino Limited (collectively and individually, "Wandle"), following the completion of its acquisition of PGIL, Wandle will procure the cancellation of the admission to trading of PGIL shares on the London Stock Exchange ("LSE") and the admission to listing of PGIL shares on the premium listing segment of the Official List. It is expected that the cancellation of listing and admission to trading will take effect on 3 December 2015.

OJSC Polyus Gold (in which PGIL has a 95% interest), a Russia domiciled public company, will become the principal holding company for the assets of the Group and will retain its listing on the Moscow Stock Exchange ("MOEX").

In its announcement of 4 November 2015, Wandle stated that it "confirms the importance it attaches to high corporate governance standards and its intention that Polyus Gold OJSC (in which PGIL has a 95% interest) will have a board of directors whose composition reflects the level of independence appropriate for best governance practices and will continue with its policies being in compliance with the laws of the Russian Federation, the company's Charter and internal policies".

PGIL confirms that OJSC Polyus Gold intends to adhere to high levels of corporate governance and disclosure as the principal holding company of the Group. In particular:

-- OJSC Polyus Gold is in the process of identifying potential candidates of appropriate caliber, experience and stature to fill the roles of independent Board members reflecting Polyus Gold's status as a world-leading public gold producer.

-- Subject to applicable legal and listing requirements and market conditions, OJSC Polyus Gold will at the appropriate time consider seeking an upgrade of its MOEX listing and at a future stage will consider the potential merits of listing depositary receipts representing its shares on the LSE (replacing the existing Level I ADR program).

-- OJSC Polyus Gold intends to implement a disclosure and reporting policy consistent with the applicable regulatory requirements and in line with the appropriate best practice standards. In addition, PGIL will continue to comply with the applicable regulatory disclosure and reporting requirements with respect to its issued USD 750 million 5.625% guaranteed notes due 2020.

PGIL foresees no changes in the Group's strategy, which is focused on monetizing its existing resource base via low cost value accretive growth, continuous operational efficiency and maintaining a leadership cost position in the industry. PGIL is confident that the current management team of the Group can deliver on this strategy.

Pavel Grachev, Chief Executive Officer of Polyus Gold, commented:

"In the last few years we have strived to meet the best standards in respect of corporate governance and disclosure. OJSC Polyus Gold as a new holding company will keep this commitment.

Our strategy will enable us to build on the success the company has already experienced in expanding production, optimizing costs, and streamlining the pipeline. The disciplined approach to growth and the focus on efficiency will remain the cornerstones of the transformation Polyus Gold is experiencing."

Polyus Gold International Limited

Polyus Gold is the largest gold producer in Russia and one of the top 10 gold miners globally by ounces produced and mineral resources base. The key operations and projects are located in the Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia). In 2014, Polyus Gold produced 1,696 thousand ounces (52.75 tonnes) of gold.

Enquiries:

Investor contact

Sergey Krivokhizhin, Director Investor Relations

[phone] [e-mail]

Media contact

Artem Gorbachev, Press Secretary

[phone] [e-mail]

Forward looking statements

This announcement may contain "forward-looking statements" concerning PGIL. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of PGIL's operations. Many of these risks and uncertainties relate to factors that are beyond PGIL's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. PGIL assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 19, 2015 08:23 ET (13:23 GMT)