VTB PLEDGES $257 MILLION CREDIT TO ACP FOR DEVELOPMENT OF COPPER MINES

ARMENPRESS
Dec 10 2007

YEREVAN, DECEMBER 10, ARMENPRESS: Russia’s second-largest bank- VTB-
has pledged a $257 million credit to Armenian Copper Program (ACP)
for development of Teghut copper and molybdenum mine in Armenia’s
northern region of Lori.

VTB CEO, Andrei Kostin, said Saturday in Yerevan the deal was
unprecedented for a post-Soviet republic.

He said for the first time a Russian bank will release that big credit
without seeking funds from international lending organizations.

The ACP will have to repay the credit in 12 years.

Andrei Kostin said the VTB has assumed the entire responsibility for
the project worth $300 million and to mitigate the risks it will own
part of shares.

Teghut project is expected to become one of the biggest projects to
be implemented in Armenia. Experts estimate that the mine contains
1.6 million tons of copper and 99,000 tons of molybdenum.

ACP intends to extract more than 30,000 tons of copper and 800 tons
of molybdenum ores per year.

Experts say if the current price of copper-$7,000-8,000 per one
ton is maintained, the company may sell annually up to $270 million
worth products.

The project will create also 1,700 vacancies in the economically
depressed area.