Irish metals exploration company Ovoca Gold has agreed to sell its interest in Olymp Limited, which holds a mining licence for the Olcha gold-silver deposit in northeast Russia, to a subsidiary of Russia’s Polymetal International.

Ovoca is to receive 775,000 Polymetal shares for its 100 per cent interest in Olymp in a deal worth £8.4 million (€10.4 million).

Polymetal is a leading gold and silver mining group operating in Russia and Kazakhstan whose ordinary shares are listed on the London’s Ftse 100.

Ovoca said it would retain the Polymetal shares “as a medium-term investment”.

Chief executive Kirill Golovanov said: “We are pleased to have agreed this transaction with Polymetal.”