The Pokrovskiy mine is nearing the end of its operational mine life and the company is converting it into a key POX hub site.

Petropavlovsk put the first of four autoclaves of the POX hub through hot commissioning during November, which helped expose certain minor defects, including a leak caused by a faulty seal within an agitator.

It had rectified all defects and the autoclave was being heated in preparation for first refractory ore concentrate processing on November 28.

The company also completed the cold and wet commissioning of all other principal equipment at the POX and filtration sections of the plant, as well as the concentrate loading, re-grinding and lime preparation sections.

The oxygen plant was also fully commissioned and was being prepared to start oxygen production to supply autoclave 1 once tests on refractory concentrate began later in the week.

Petropavlovsk said maiden gold production from the POX plant was expected in the March 2019 quarter after which output would ramp up to commercial production throughout the year.

The company's shares were up 2.56% on the news to 5.6p (US7.14c).

At the same time, Petropavlovsk said IRC, in which it is a 31.1% shareholder, was in the final stages of concluding the refinancing agreement and staged guarantee reduction of a new US$240 million facility with an unnamed leading Russian bank.

The transaction was subject to shareholder approval, with a general meeting planned for January, with the funds to be available for draw down later that month.

IRC owes the Industrial and Commercial Bank of China (ICBC) a loan repayment on December 20, but Petropavlovsk said it was in advanced discussions to obtain a waiver for the upcoming payment until the refinancing was finalised.