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Kinross Gold Corp. says it has completed the sale of its Russian assets to the Highland Gold Mining group of companies for US$340 million, half of what it had negotiated earlier, after Russian authorities capped the price.
The Canadian gold miner had announced a deal in April to sell the assets including the Kupol mine and surrounding exploration licenses for US$680 million.
However, Kinross says the price was changed after a review by the recently formed Russian Sub-commission on the Control of Foreign Investments which approved the sale for a price not exceeding US$340 million.
Highland Gold is one of the largest gold mining companies in Russia.
Under the revised agreement, Kinross says it has received US$300 million in its corporate account and will receive a deferred payment of US$40 million on the one-year anniversary of closing.
Kinross says it has now sold all of its interests in Russia and has no further obligations or liabilities in the country.