OREANDA-NEWS. April 15, 2011. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) ("Polymetal" or the "Company") announces that it has restructured debt obligations and related derivative liabilities (the "Restructuring") assumed by the Company's subsidiaries as a result of the acquisition of Varvarinskoye Gold-Copper Mine in Kazakhstan ("Varvarinskoye") in November 2009, reported the press-centre of Polymetal.

As a result of the Restructuring all obligations, totaling USD 230 million, were transferred from the level of Polymetal subsidiaries to the level of JSC Polymetal. The following repayment schedule was fixed in place of the cash sweep mechanism under the original facility: USD 30 million in each of 2011 and 2012, USD 50 million in 2013, and USD 60 million in each of 2014 and 2015. The Company will pay interest quarterly at a rate of 3-month LIBOR plus 3% per annum to the lenders comprising Investec Bank Plc., Investec Bank Limited, Natixis, N.B.S.A. Limited and Nedbank Limited (collectively, the "Lenders").

Therefore, as a result of the Restructuring, Polymetal's liabilities are no longer limited to USD 90 million (as per the original guarantee provided by the Company in 2009). On the other hand, the Lenders have forgone certain security arrangements and undertakings typical for project finance facilities, such as pledges of shares and movable and immovable property, the necessity to have all material contracts approved by the Lenders, political risk insurance etc.

"We are satisfied with significant simplification of our debt arrangements stemming from the Varvarinskoye acquisition," said Vitaly Nesis, CEO of Polymetal.

"With this new debt structure our flexibility to pursue growth initiatives at Varvarinskoye has increased and we will continue assessing different investment opportunities for this asset".