Russian investment group VTB Capital has acquired a minority stake in Zapadnaya Gold Mining (ZGML).
The company has more than 25 years of experience and has successfully worked across the gold value chain in Eastern Siberia, according to Tim Demchenko, head of private equity and special situations at VTB Capital.
He said, “This transaction is VTB Capital’s first project in the gold mining industry, and we want to continue to develop our private equity business in this direction. We see great a potential for greater production of gold, and look forward together to working with ZGML’s management to transform the company into an industry leader.”
Pavel Babarykin, chairman of the board of directors of Zapadnaya Gold Mining, added, “Attracting investment capital in this way gives us extra confidence that we will complete construction of the Alexandrovsky mine and modernise the Kedrovsky mine exploration according to schedule. It will also allow us to execute a medium-term program that would significantly increase gold mining stocks and the growth of reserves in Yakutia, and Zabaykalsky, as well as the Republic of Buryatia.”
Earlier this year, VTB, through its early stage fund partnership DFJ VTB Capital Aurora, invested $5m in nanotechnology company Rolith.
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