Verny Capital Concludes Deal to Transition RG Gold Ownership
Verny Capital Announces the Sale of RG Gold
Verny Capital Group has finalized an important agreement to sell RG Gold, a prominent gold mining company that it has been managing since 2014. Over the years, substantial advancements have been made to enhance the gold deposit, including robust investments in production infrastructure and modernization initiatives aimed at fostering growth.
Partnership with Resource Capital Funds
Achievements in Production Capacity
Since the inception of their partnership in 2018, Verny Capital has collaborated closely with Resource Capital Funds, a U.S.-based private equity manager, to amplify RG Gold's output. This collaboration has introduced advanced technologies that prioritize personnel safety while optimizing operational efficiency and minimizing production costs. Remarkably, in just a decade, RG Gold's resource base has expanded threefold, reaching 7.6 million ounces in line with JORC standards.
Major Sale to Zijin Gold International
The terms of the sale have been agreed upon with Zijin Gold International, a subsidiary of the robust Zijin Mining Group Co. Ltd. With a market capitalization nearing USD 70 billion and an expansive portfolio of over 30 global projects, Zijin Mining is recognized for its commitment to sustainable mining practices and innovative technology. Their entry into the region signals a promising chapter for economic growth and job creation in the mining sector.
Expert Guidance through the Transition
To facilitate this transaction, Verny Capital and Resource Capital Funds have engaged leading financial institutions, namely J.P. Morgan Securities plc and BMO Capital Markets, in tandem with the renowned law firm Herbert Smith Freehills. This strategic alliance highlights the seriousness with which they are approaching this significant transition in ownership.
A Vision for the Future
Aidan Akanov, CEO of Verny Capital Group, expressed his pride in the development from a small-scale operation to a leading gold producer. “This sale represents our standard business model of enhancing an asset and capitalizing on favorable market conditions,” he remarked. The focus now shifts to exploring new investment opportunities that promise high returns in Kazakhstan, which holds great promise for progressive projects in the mining sector.
Commitment to Community and Economic Impact
Under Verny Capital's management, RG Gold successfully launched a state-of-the-art gold processing plant in 2022, representing an investment of USD 424 million and significantly increasing its operational capacity. RG Gold has not only been a leader in production but also in contributing to the regional economy. As one of the country's largest taxpayers, the company has invested over 160 billion tenge into the state budget and has generated around 1,200 jobs, actively engaging in community development and infrastructure enhancement initiatives.
Frequently Asked Questions
What is the significance of the sale of RG Gold?
The sale of RG Gold represents a strategic shift to strengthen operations under a major international player, promoting growth and innovation within the mining sector.
Who is the new owner of RG Gold?
Zijin Gold International, a subsidiary of Zijin Mining Group, is the new owner of RG Gold, bringing extensive resources and expertise to the operation.
How has Verny Capital contributed to RG Gold's success?
Verny Capital has played a crucial role in modernizing RG Gold's operations, enhancing production capabilities, and ensuring sustainable practices.
What was the impact of the partnership with Resource Capital Funds?
The partnership has resulted in significant expansions in RG Gold's production capacity and resource base, utilizing advanced technology for better operational efficiency.
How does RG Gold support the local economy?
RG Gold is a significant taxpayer and job creator, investing substantially in community initiatives and infrastructure development, thus contributing positively to the region's social fabric.
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