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Petropavlovsk PLC - London-based gold miner in Russia - Says Moscow-based Gazprombank, which is on the UK sanctions list, has sent a notice demanding the repayment of loans. Gazprombank wants immediate repayment of $201.0 million due under Petropavlovsk's committed term facility agreement with the bank and repayment by Tuesday next week of UD87.1 million due under the company's Russian subsidiaries' revolving credit facilities.
Petropavlovsk last week had said it was unable to make interest payments to Gazprombank, due to the sanctions imposed on the Russian lender. It also said it has limited cash reserves outside Russia, and legal restrictions in Russia limit its ability to transfer cash out of the country. What's more, as a condition of the loans, Gazprombank acts as the buyer of all of Petropavlovsk's gold production. ‘The company is considering the implications of these notices with its advisers,’ Petropavlovsk says on Wednesday.
Current stock price: 1.86 pence, down 12% on Wednesday
12-month change: down 93%
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