#Kazakhstan #Astana #Verny Capital #RG Gold #Zijin Mining

Verny Capital Announces Sale of RG Gold Mining Company

Verny Capital Group has recently signed a significant agreement for the sale of RG Gold, a prominent gold mining enterprise that it has been managing since 2014. Over the past decade, the management has put considerable effort into developing the mine, constructing the necessary production infrastructure, and initiating modernization programs. There have also been substantial investments in equipment and geological explorations, which have greatly enhanced the operational capacity of RG Gold.

Since 2018, Verny Capital has enjoyed a strategic partnership with Resource Capital Funds (RCF), a private equity manager based in the United States, aimed at expanding RG Gold's capabilities. This collaboration has utilized state-of-the-art technology to ensure not only the safety of employees but also to significantly promote operational efficiency while keeping operational costs low. Over the past ten years, RG Gold's resource base has tripled, reaching an impressive 7.6 million ounces in compliance with the JORC standard.

The recent agreement for the sale of RG Gold was made with Zijin Gold International, a subsidiary of Zijin Mining Group Co. Ltd, one of the world's leading mining companies specializing in gold and non-ferrous metal extraction and processing. Zijin Mining boasts a market capitalization of approximately $70 billion, with a diverse project portfolio that spans over 30 ventures in 17 countries. The company is deeply committed to sustainable growth practices, environmental responsibility, and innovation through green technologies. As Zijin enters the Kazakh market, its plans include adopting global best practices to bolster the country's economic growth and create new job opportunities.

During this transaction, Verny Capital and RCF were advised by well-respected investment banking firms, namely J.P. Morgan Securities plc and BMO Capital Markets, along with the reputable law firm Herbert Smith Freehills. Aidan Akanov, the CEO of Verny Capital Group, remarked, “We have successfully transformed a small operation into one of the country's leading gold producers. Now, ten years later, we are planning to hand over RG Gold to a major international company with a significant track record in managing mining operations. This aligns perfectly with Verny Capital's business model of developing an asset and exiting under optimal market conditions. Currently, we are exploring new and potentially successful investment opportunities, as we believe Kazakhstan holds great potential for developing high-performance projects.”

Under Verny Capital’s leadership, RG Gold commenced operations of a new gold processing facility valued at $424 million in 2022, which significantly augmented its production capacity.

Martin Valdes, a partner at RCF, commented, “Our investment in RG Gold was our first project in Kazakhstan, and we are proud to have contributed to the successful growth of one of the leading production sites in the country. We extend our heartfelt gratitude to our strategic partner, Verny Capital Group, with whom we initiated this success story. We also welcome the entry of a major international enterprise, Zijin Mining Group, into the Kazakh market, demonstrating the long-term attractiveness of Kazakhstan as a reliable partner for businesses and investors.”

RG Gold has not only demonstrated consistent high production performance but also plays a pivotal role in the economic and social development of Kazakhstan. Over the years, the company has become one of the country's largest taxpayers, contributing more than 160 billion Tenge to the state budget. RG Gold has created approximately 1,200 jobs and actively engages in social initiatives aimed at supporting local communities, developing infrastructure, and enhancing the quality of life in the region.