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Fribourg Investments buys 49% stake in Romania's Romaltyn

Fribourg Investments buys 49% stake in Romania's Romaltyn

BUCHAREST (Romania), February 11 (SeeNews) - Investment fund Fribourg Investments has acquired a 49% stake in Romaltyn Limited, which owns a mining project near the northwestern Romanian city of Baia Mare, Romaltyn said on Monday.

The buyer plans to re-start Romaltyn’s operations in the fourth quarter of 2013, following investments of some $40 million (30 million euro) in new equipment, Romaltyn said in a statement.

Under the deal, Fribourg Investments also took over the operational control of a recycling project for mining waste. Over a period of five years 8.5 million tonnes of mining waste are expected to be recycled.

In May 2012, Russian gold producer Polyus Gold said it completed the sale of its 100% interest in Romaltyn Limited, an Isle of Man holding company of Romaltyn Mining S.R.L. and Romaltyn Exploration S.R.L, to a British Virgin Islands incorporated holding company affiliated with SAT & Company JSC (Kazakhstan) for a total consideration of $20 million.

Romaltyn Mining S.R.L. and Romaltyn Exploration S.R.L. hold rights to various mining assets in Romania including a gold treatment plant in Baia Mare with a capacity of 2.5 million tonnes of ore and tailings annually, currently not in operation, and a number of exploration properties.

Fribourg Investments is controlled by businessman Ion Sturza, former prime minister of Romania's eastern neighbour, Moldova.

($ = 0.7467 euro)