Kinross Gold Corp. is selling its Russian mines for US$340-million – half the previously negotiated price – after Moscow imposed limits on the size of the sale. In March, Kinross suspended operations at its two properties in Siberia in response to Russia’s invasion of Ukraine.
In April, Canada’s third-largest gold producer announced it would sell the mines to Highland Gold Mining Ltd. for US$680-million, with US$100-million up front and the remainder to be paid over five years.
On Wednesday, Kinross announced the transaction will now consist of a US$300-million initial payment, which the Toronto-based company has already received, and US$40-million a year from now.
Kinross said in a news release: “The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments, which approved this transaction for a purchase price not exceeding US$340-million.”
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