15 Sep 2021 17:27

Highland Gold buying Gold of Kamchatka

MOSCOW. Sept 15 (Interfax) - Firms associated with Vladislav Sviblov's Highland Gold are buying Gold of Kamchatka.

"The agreement has been signed with just a few mandatory procedures left for the deal to close," Anton Glazunov, head of strategy and development at Highland Gold, told Interfax. "Highland Gold structures are buying Gold of Kamchatka," he said.

The Kumroch project, which Gold of Kamchatka has sold to former ChelPipe owner Andrei Komarov, is not part of the deal.

Other aspects of the deal, including its cost, are not being disclosed.

"Highland Gold is expanding its portfolio of upstream assets as well as development projects with the acquisition of this asset. This will have a positive impact on operating and financial results," Highland Gold said.

Sviblov also owns Trans-Siberian Gold, which develops the Asacha field in Kamchatka. TSG is currently under the management of Highland Gold, the company said. "We are not ruling out the scenario where this asset becomes part of the company for a subsequent synergy of enterprises in Kamchatka," Glazunov said.

Gold of Kamchatka's owners have long been looking for a buyer. GV Gold agreed to buy the company for $500 million back in 2017 but the deal did not go through. Kenes Rakishev has also shown an interest. KompleksProm gained control of Gold of Kamchatka at the end of 2020.

Gold of Kamchatka is one of Russia's top 15 gold miners. The Gold Producers' Union said it produced 4.2 tonnes of gold in 2020. Its operating Ametistovoye and Aginsky mines are both located in Kamchatka.

Highland Gold is a top 10 gold miner which produced 8.5 tonnes of gold in 2020, the Gold Producers' Union estimates. Its main projects are located in the Khabarovsk and Trans-Baikal territories, the Chukotka Autonomous District, and also Kyrgyzstan.