JSC Polymetal («Polymetal») is pleased to announce that it has concluded a social and economic cooperation agreement with the regional government of the Khabarovsk Territory
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The social and economic cooperation agreement - which is valid until March 2011 - was signed today by Polymetal CEO Vitaly Nesis and Gennady Pocherevin, the Minister of Natural Resources for the Khabarovsk Territory.
Under the terms of the agreement, Polymetal agrees to contribute 15 million rubles per year to finance high-priority social development projects in the Khabarovsk Territory, including in the areas of: public health, sport, science, arts and culture and environment and ecology.
"Polymetal started their activities from nothing in the region in 1998," commented Gennady Pocherevin. "Over time, the Company has demonstrated great reliability. In all of its years of operating in the Khabarovsk Territory, there has not been a single claim against the Company."
Based on the signed cooperation agreement, the Company agreed to contribute 5 million rubles and 10 million rubles per year, respectively, to the Polina Osipenko and Okhotsk municipal districts of the Khabarovsk Territory. These funds will help support social programs in these districts in which Polymetal's subsidiaries operate.
Vitaly Nesis stated: "The Khabarovsk Territory is a key strategic region for our Company. Polymetal has large-scale plans - both for existing projects in the area and also for potentially promising next generation assets. The signing of this agreement demonstrates our commitment to developing an effective partnership with the Khabarovsk Territory to help stimulate economic development in the area."
In the Okhotsk District of the Khabarovsk Territory, Polymetal operates the Khakanja deposit, the Yurievskoye development project and five early stage exploration projects. In 2005, Okhotsk Mining and Geological Company produced 3.7 tons of gold and 76 tons of silver. According to the Russian Union of Gold Producers, the Company accounted for 20% of gold production in the Territory in 2005.
In the Polina Osipenko district of the Khabarovsk Territory, Resources Albazino, a Polymetal subsidiary, holds the license to the Albazino gold deposit, which it acquired in the summer of 2006. According to JORC-standards, the Albazino deposit has 6,605 tons of ore with an average head grade of 5.17 g/t. At present, the Company is carrying out active drilling at the site and is working to develop a flow sheet. Polymetal is targeting launching operations at Albazino in 2010.
International Investor Relations Department
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