Petropavlovsk blocked from making gold sales to Gazprombank

25th Mar 2022 07:46

(Sharecast News) - Gold mining company Petropavlovsk said on Friday that its has been blocked from making further sales of gold to Gazprombank following the Russian bank's inclusion on the UK Sanctions List.

Petropavlovsk, which a has $200.0m committed term loan with Gazprombank, as well as roughly $86.7m in revolving credit facilities, stated an asset freeze had prohibited from making further sales of gold to the bank at present, and also highlighted that restrictions on purchasing and selling gold in Russia could make it "challenging" to find an alternative purchaser for its gold output.

The London-listed company also noted that an interest payment of $560,000 was due to be paid today under its term loan with GBP but it was currently prohibited from doing so under the regulations.

"The company is urgently considering with its advisers the implications for the group's activities and financing arrangements resulting from GPB being designated for the purposes of an asset freeze. A further announcement will be made in due course," said Petropavlovsk.

Petropavlovsk also confirmed that none of the companies in the group had been named in the sanctions against Russia announced by the United Kingdom, United States, European Union, and other nations.

As of 0845 GMT, Petropavlovsk shares had sunk 32.85% to 1.20p.