The sale includes Kinross Gold’s Kupol mine (above). (Photo: Kinross Gold)

Kinross Gold Corp. has completed the sale of 100% of its Russian assets to the Highland Gold Mining group of companies for total consideration of $340 million in cash. Kinross has received $300 million in U.S. denominated cash in its corporate account and will receive a deferred payment of $40 million on the one-year anniversary of closing.

This amount is less than what was previously agreed upon on April 5. The total consideration for the transaction was $680 million, which included a payment of $100 million upon closing, with the remaining $580 million scheduled to be received in annual payments from 2023 through to 2027. This included $400 million for the Arctic Kupol mine and the surrounding exploration licenses, and another $280 million for the Udinsk mine until 2027.

The transaction was adjusted by the parties following review by the recently formed Russian Subcommission on the Control of Foreign Investments, which approved this transaction for a purchase price not exceeding $340 million.

With the approval and completion of the sale, Kinross has divested all of its interests in Russia and has no further obligations or liabilities in the country.

“After the completed divestment of our Russian business, Kinross’ rebalanced portfolio maintains a substantial production outlook anchored by its two tier one assets — Tasiast and Paracatu — as well as a strong portfolio of mines in the Americas, a growing business in Chile, and the large, world-class Great Bear project in Canada,” Kinross President and CEO J. Paul Rollinson said. “We would like to thank our Russian workforce for their dedication, professionalism and hard work. Their ongoing commitment to safety and the environment, especially during the transition of our business in the country, has been commendable.”

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.