Ovoca Gold

Full Ovoca Gold profile here

Ovoca Gold Plc is a Moscow-based gold exploration and mine development company with a strong balance sheet and an exciting portfolio of gold properties in the Magadan region, Russia. 

The Company has a successful track record of developing precious metals assets and bringing value to shareholders. At the beginning of 2009 Ovoca Gold sold its flagship asset, the Goltsovoye silver deposit, for $47.7mn, a near 200% premium to the Company’s market capitalization at the time of sale closing. The entire asset development cycle Ovoca completed on Goltsovoye, from exploration to feasibility study to financing and start of mine construction.

Ovoca Gold acquires three gold exploration projects in Russia

Monday, December 21, 2009
company news image

Ovoca Gold (AIM: OVG) has entered into a conditional acquisition agreement for a 100% interest in a portfolio of gold exploration projects in the Magadan region of Russia for up to US$25 million, looking to position itself as a significant junior gold explorer in that country.


Ovoca will pay an initial consideration of US$7 million and a deferred payment contingent upon the achievement of certain targets of up to US$18 million for the companies Magsel, Bulun and Olymp, which hold the rights to the Stakhanovsky license, the Rassoshinskaya license and the Nevsko-Pestrinskoye license respectively. The company will also assume approximately US$7.5 million of the target companies’ debts.


The consideration will be financed entirely from the company’s existing cash and investments of US$58 million.
The three companies are owned by three of Ovoca’s major shareholders, who jointly own 44.7% of the company. The board has decided to make the transaction contingent on shareholder approval, even though it’s not required by the AIM and IEX rules.

Proactiveinvestors recommends


Ovoca disposed of its wholly owned Goltsovoye project in Magadan earlier this year for an 80% premium to its market capitalisation.


“By acquiring a new portfolio of assets in Magadan, management intends to repeat the success of the Goltsovoye deal in an area where we have established business relationships and operational know-how... our goal as a company is to be the premier gold exploration company in Russia and the ideal partner for strategic investors wishing to enter the Russian gold mining space. This transaction puts us firmly in that place,” said Chief Executive of Ovoca Timothy McCutcheon.


Under the terms of the Stakhanovsky license, the company has to commence exploration activity before September 2010, complete it by 2012 and commence preparation and building of the mine before September 2014. Exploration activities at the Rassoshinskaya and Nevsko-Petrinskoy licenses have to be finalised and a geological reports to the state has to be prepared by February 2011 and September 2011 respectively.


Register here to be notified of future Ovoca Gold articles.

Investors interested in Ovoca Gold recently viewed

Additional Information

Market:AIM
Sector:General Mining - Gold
EPIC:OVG
Latest Price: 22.00  (-2.27% Descending)
52-week High:25.00
52-week Low:14.75
Market Cap:19.46M

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.