Ovoca Gold Plc (“Ovoca” or the “Company”) was founded in 1985 in Ireland and since inception has been involved in natural resource development. Ovoca entered Russia in 2004 with the acquisition of Norplat Limited, a company operating in the Murmansk Region which owns the licenses for the Pellapakh molybdenum-copper-gold ore body and the Oleninskoye gold ore body.
In 2006 Ovoca acquired 74% of OAO Ajax, a Russian company that owned the Goltsovoye silver deposit in the Magadan Region, in the Russian Far East directly North of Japan. Goltsovoye at the time was one of the world’s largest, highest grade silver deposits as yet un-mined. Ovoca carried out confirmatory drilling to verify historical Soviet data, established a JORC resource, completed a Bankable Feasibility Study and secured project financing to build a mine. At the time of financing, Goltsovoye had a M,I&I silver resource of 45mn ounces at a grade of 860 grams per ton, projected output of 6 million ounces per year, and a cash cost of $4.11 per ounce. Goltsovoye, once in production, was set to be the world’s seventh largest primary silver mine. The economic crisis of 2008 coincided with the financing, which was later withdrawn. As such, Ovoca sold Goltsovoye to OAO Polymetal for a cash and share consideration worth $47.7 million at deal closing on 23 January 2009. The consideration was a 194% premium to the Company’s market capitalization, and was an important success, particularly in light of the overall market condition and continuing global economic malaise.
In January 2010 Ovoca closed on the purchase of 100% of the Nevsko-Pestrinskoye, Stakhanovsky and Rassoshinskaya gold exploration and development projects in the Magadan Region. Nevsko-Pestrinskoye completely surrounds the Goltsovoye license area and Ovoca intends to capitalize past knowledge of Goltsovoye ore body extensions which are on the Nevsko-Pestrinskoye license. Stakhanovsky is a fast track development project with power and infrastructure already in place. The ore body at Stakhanovsky is not complex geologically and has simple metallurgy with potentially significant gold recoveries from gravitation methods alone. Rassoshinskaya is a potentially world class gold project which the Company is aggressively advancing.