Nord Gold received a three-year call option from Canadian Columbus Gold Corp with respect to 50.01% of the shares in Sotrapmag Sas which possesses the license for the Montagne d'Or deposit in French Guiana (South America), the company informed.
With this transaction, Nord Gold has become the first Russian gold mining company in the South America. According to the company's CEO Nikolay Zelensky, the project is expected to be launched in the fall of 2018, with project costs projected at ca. $300 million, annual production at over 100 thousand ounces of gold.
Nord Gold N.V. is a subsidiary of OJSC Severstal established in 2010 through the reorganization of the gold mining division of the holding. The company includes 8 operating mines in four countries: Russia, Kazakhstan, Guinea and Burkina Faso along with a number of projects under development and investigation. The company's consolidated reserves are estimated at 23 million troy ounces of gold and 103 million troy ounces of silver, the proved gold stock is 8.9 million ounces. In 2010, the company extracted about 589 thousand troy ounces of gold (+10.3% from 534 thousand troy ounces in 2009). By 2013, Nord Gold intends to increase the output to 1 million troy ounces.
According to the information and retrieval system DataCapital, IFRS net profit of Nord Gold N.V. for H1 2012 decreased twice to $65.252 million from $130.023 million the year before. Revenue fell by 2.74% to $528.539 million from $543.433 million, EBITDA by 18.88% to $217.651 million from $268.31 million, EBITDA margin was 41.2% against 49.4% the year before.