Highland Gold buying Kinross Russian assets for $680 mln

MOSCOW. April 5 (Interfax) - Canada's Kinross Gold has entered into a definitive agreement to sell its Russian assets to the Highland Gold group, the seller said.

The transaction includes the acquisition of the Kupol and Dvoinnoye operating mines, exploration assets including the Chulbatkan project, as well as associated infrastructure.

Highland gold said the acquisition will be for a total consideration of US$680 million in cash subject to an extensive security package, of which less than 15% is payable on closing and with deferred payments through to the end of 2027. No bank financing will be required for the initial payment. The transaction is subject to the approval of the Russian government.

Kinross, one of the world's ten biggest and Russia's five biggest gold miners, said at the beginning of March that "due to rapidly changing conditions," it was suspending work in Russia, in particular, its activities on the Chulbatkan project, and that it had "set about suspending" work at Kupol.