EXPLORATION company Minmet has negotiated a right to acquire 91 per cent of a Russian company with extensive gold mining interests. The acquisition is conditional on Minmet arranging up to 560 million (£37.8 million) project finance for the development of one of the gold properties.

Minmet has negotiated the right to acquire 91 per cent of Pervomaika, a company which has existing metals processing facilities and which also owns 40 per cent of Zabaikalzoloto a public company which owns the Darasun mine and the concession for the Talatuy mine in Siberia.

The Darasun mine has gold reserves of 9.4 million ounces but recent annual production of ore has dropped sharply because of higher costs.

Minmet has also completed the restructuring of its shareholding in the American company Gulf Exploration Consultants, under which it has acquired Gulf's 27.5 per cent interest in Emerging Money, an on line information business.