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Kinross announces sale of Russian assets

Published by , Editor
Global Mining Review,

Kinross Gold Corp. has entered into a definitive agreement with the Highland Gold Mining group of companies and its affiliates to sell 100% of its Russian assets for a total consideration of US$680 million in cash.

As part of the transaction, Kinross will receive a total of US$400 million in cash for the Kupol mine and the surrounding exploration licenses, which includes payment of US$100 million upon closing, as well as additional payments of US$150 million before the end of 2023, US$100 million before the end of 2024, and US$50 million before the end of 2025. Kinross will also receive a total of US$280 million in cash for its Udinsk project, which includes payments of US$80 million before the end of 2025, US$100 million before the end of 2026, and US$100 million before the end of 2027.

The deferred payments are secured by an extensive security package that includes share pledges, financial guarantees, and an escrow account. All payments under the agreement are payable in US dollars.

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 finalisation of certain ancillary agreements.

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