Russian gold and silver miner Polymetal has mandated UniCredit for a five-year US$200mn debt facility.

The loan is priced at 350 basis points over Libor and will be repaid in quarterly instalments after a two-year grace period, with the final instalment paid on November 19, 2015.

The money will be used to repay the mining firm’s existing loans and to finance ongoing operations of its subsidiaries.

“This agreement represents yet another result of our dedicated work aimed at decreasing the cost and extending the duration of our credit portfolio,” notes Vitaly Nesis, chief executive officer of Polymetal.

“We will continue this work together with UniCredit, our long-term partner, as well as with our other key relationship banks,” Nesis adds.

Polymetal is currently in expansion mode after it entered into a letter of intent in October to acquire an 85% interest in East Tarutin; a mid-stage exploration development in Kazakhstan.

“We are keen to expand in Kazakhstan and East Tarutin is just the right opportunity given its closeness to Varvarinskoye [another Polymetal-owned mine] and excellent bulk-mining exploration potential,” Nesis said at the time.