Highland Gold announces the acquisition of Kinross Gold’s Russian assets
Highland Gold Mining Limited has announced that it has entered into a definitive agreement with Kinross Gold, a major Canadian gold miner, to acquire 100% of its Russian assets. The transaction includes the acquisition of the Kupol and Dvoinnoye operating mines, exploration assets including the Chulbatkan project, as well as associated infrastructure.
An initial payment of less than 15% of the overall purchase price is payable upon closing and with the rest of the consideration structured as deferred payments through to the end of 2027. The deferred payments are secured by an extensive security package. No bank financing will be required for the initial payment. The transaction is subject to the approval of the Russian government.
The deal has received the support of the Russian Ministry of Industry and Trade with Minister Denis Manturov explaining, “In the current climate it is important to ensure the continued operation of key industrial enterprises, maintaining jobs and preventing stoppages, as well as ensuring the implementation of priority regional projects. Kinross Gold opted for the second of the three options proposed by the Government for foreign investors looking to exit their Russian projects. We therefore support this deal which will result in a stable flow of tax revenues, the saving of jobs, and support for social projects in the regions of presence.”
Vladislav Sviblov, CEO of Highland Gold commenting on the deal said, “Our team has extensive expertise in underground mining as well as developing greenfield projects. This will allow us to secure the uninterrupted operations of these new assets and ensure the development of their socio-economic potential. Our largest mining hubs are located in the Khabarovsk and Chukotka regions, precisely where these mines are located, and we therefore anticipate operational, logistical and management synergies. We also intend to maintain the high operating standards of the previous owner, and to invest in employee development.”
Highland Gold is one of the leading gold miners in Russia. Its operations are concentrated around four regional hubs – Khabarovsk, Transbaikalia, Kamchatka, and Chukotka. Highland is also commissioning the Ozernoe mine in Buryatia.
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