OREANDA-NEWS. Eurasian Development Bank (EDB) and Polymetal signed a USD 80 million non-revolving credit facility agreement to finance the development of the Kyzyl gold project in Kazakhstan.

The facility will be used to finance pre-construction expenses in 2015 and in the first six months of 2016, including the preparation of the feasibility study and design documents, purchasing of mining equipment, and investments in exploration and infrastructure. The drawdown period is 18 months.

The loan will be repaid in equal quarterly instalments starting from April 2018 with a final maturity date of 2 April 2020.

"The signing of the credit facility agreement with EDB is another important milestone in the development of the Kyzyl gold project and strengthens our long-term relationship which we expect to lead to further future cooperation with EDB on this project", said Vitaly Nesis, CEO of Polymetal.

"This deal is another step in the development of our bilateral relationships with Polymetal. Despite a challenging macroeconomic environment, Eurasian Development Bank continues to finance projects in such a complex and capital intensive sector as mining," says Gennady Zhuzhlev, Deputy Chairman of the Management Board at EDB.