RDIF and Baring Vostok Private Equity Fund V invest in Tigers Realm Coal

Privateequitywire, 13.12.2013

The Russian Direct Investment Fund (RDIF) and Baring Vostok Private Equity Fund V (BVPEF V) have made a joint investment of USD48m into newly issued shares of Tigers Realm Coal (TIG).

TIG has coking coal assets in the Chukotka province in Russia's Far East.

RDIF will invest a total of USD14.9m with BVPEF V contributing USD33m. Additionally, the current shareholders of TIG will have the right to invest up to USD8.7m.

Following completion, RDIF will become an 11 per cent shareholder in TIG.

The funds will be used by TIG to complete a Bankable Feasibility Study (BFS) and further develop the Fandyushkinskoye deposit (Project F) at the Amaam North coking coal deposit in Chukotka, as well as continue exploration works at the Amaam deposit. The first coal sales at Project F are targeted for 2016.

Kirill Dmitriev, chief executive of RDIF, says: "We are delighted to have joined Baring Vostok Private Equity Fund V to support Tigers Realm Coal in the development of two attractive coking coal deposits in Chukotka. One of RDIF's mandates is to attract international investors to support projects in Russia's Far East in areas such as mining and high value-added mineral resource processing, and this is our second commitment to the region. Our investment in TIG and its world class exploration technology and expertise will help to accelerate the development of the project, create new jobs and represents an important opportunity for RDIF due to its attractive fundamentals and proximity to export markets."

Craig Parry, managing director of TIG, says: "We are very pleased to have two prestigious funds, RDIF and BVPEF V, demonstrate confidence in TIG's projects through their significant investments in the company. It confirms our view that the Amaam projects are world class and that Russia is an attractive domicile to invest in. We look forward to working together with RDIF and BVPEF V to see Project F into production and to realise the additional potential of the larger Amaam deposit."