Highland Gold to pay US$680 million for complex that would have accounted for 13% of Kinross’s 2022 gold production
Toronto-based Kinross Gold Corp. is unloading its Russian mine and exploration assets in a sale that will provide a new test of the reach of western sanctions.
Highland Gold Mining Ltd., one of the largest Russian gold miners, which once counted billionaire oligarch Roman Abramovich as a major shareholder, has agreed to pay US$680 million for the Kinross mine complex that would have accounted for 13 per cent of its 2022 gold production.
The sale price is lower than many analysts’ estimated value, but was greeted warmly by investors: Kinross agreed to put the mine on care and maintenance last month after widespread sanctions against Russia forced many western companies to exit the country.
Kinross shares rose 1.6 per cent to $7.63 on the TSX. Under the deal, Kinross would receive US$100 million in cash upon closing, but the remaining US$580 million would be paid in six separate annual payments between now and 2027. The deal requires final approval from the Russian government.