Exploration joint venture

As part of the Company’s efforts to build and advance long-term growth pipeline, Polymetal is pursuing grassroots, greenfield exploration through joint ventures with junior explorers in order to access promising, untested mineral properties for a reasonable price.

“Our goal is to bring together Polymetal’s financial and permitting clout and juniors’ fresh thinking and fast decision-making”, said Sergey Trushin, Deputy CEO, Mineral Resources.

Typical JV structure:

• Staged approach (3-5 years) to funding of exploration campaigns via earn-in equity and / or debt financing.
• Polymetal is granted a call option to acquire a remaining stake.
• Exit based on JORC-compliant resources or reserves at pre-agreed market valuation.
• Operatorship left to juniors to enhance decision making process until the controlling stake is acquired.