Kinross will receive $400 million in cash for the Kupol mine (above) and the surrounding exploration licenses. (Photo: Kinross)
Canada-based Kinross Gold Corp. entered into a definitive agreement with the Highland Gold Mining group of companies and its affiliates to sell 100% of its Russian assets for total consideration of $680 million in cash. Kinross will receive $400 million in cash for the Kupol mine and the surrounding exploration licenses, which includes payment of $100 million upon closing, as well as additional payments of $150 million before the end of 2023, $100 million before the end of 2024, and $50 million before the end of 2025. Kinross will also receive a total of $280 million in cash for its Udinsk project, which includes payments of $80 million before the end of 2025, $100 million before the end of 2026, and $100 million before the end of 2027.
Highland Gold is one of the largest gold mining companies in Russia and operates several mines in the country, including in the Chukotka and Khabarovsk regions where the Kupol mine and Udinsk project are located, respectively.
The transaction is subject to the approval of the Russian government and the finalization of certain ancillary agreements.
Highland Gold’s operations are located around four main hubs in the Khabarovsk, Zabaikalsky, Kamchatka and Chukotka regions of Russia, as well as in Kyrgyzstan in Central Asia. The company currently has four operating mines and a strong pipeline of exploration and development projects.
