MOSCOW, February 20 (RIA Novosti) - Polymetal International, which unites the assets of Russian gold and silver producer Polymetal, said on Wednesday it has signed a $95.5 million deal to buy a gold deposit in the Urals.

“Polymetal has entered into a binding memorandum of understanding with Vitalex Investments Ltd and Arrowline Investments Ltd to acquire a 100 percent interest in Maminskaya Gornorudnaya kompania (MGK), which holds an exploration and mining license for the Maminskoye gold mining field valid until 2023,” Polymetal said in a statement.

The Maminskoye gold deposit is located in the Sverdlovsk region, some 70 km (43 miles) from the regional capital Yekaterinburg and 30 km (19 miles) from the city of Kamensk-Uralsk. The gold mine is estimated to hold 22 tons of gold. Commercial production is expected to start in the second quarter of 2016 and the gold mine will reach full capacity in the second quarter of 2017.

The Maminskoye mine will process 2-3 million tons of ore annually to produce 80,000-120,000 ounces of gold a year.

Polymetal will pay a total consideration of $77.2 million as the transaction value will be reduced by the amount of MGK’s debt outstanding at the completion of the deal. Polymetal will pay $3.9 million in cash, with the balance of $73.3 million payable in Polymetal’s shares.

The deal is expected to be closed after it is approved by Russia’s anti-monopoly watchdog.