Kinross sells Russia assets for $680m to Highland Gold

Canadian miner Kinross Gold on Tuesday revealed the buyer for its Russian assets, announcing that Highland Gold Mining group would acquire its mines and projects in that country for $680-million in cash.

The company last month announced the sale of its Russian assets in response to President Vladimir Putin’s invasion of Ukraine, which led to Western nations imposing sanctions on Russia.

Kinross said it would receive $400-million for the Kupol mine and the surrounding exploration licences, of which $100-million would be paid upon closing and the balance over the next three years.

For the Udinsk project, the company would receive $280-million in cash, which included payments of $80-million before the end of 2025, $100-million before the end of 2026, and $100-million before the end of 2027.

Kinross noted that the deferred payments were secured by an extensive security package that included share pledges, financial guarantees and an escrow account.

Highland Gold is one of the largest gold mining companies in Russia and operates several mines in the country, including in the Chukotka and Khabarovsk regions where the Kupol mine and Udinsk project are located, respectively.

The transaction is subject to the approval of the Russian government and the finalisation of certain ancillary agreements.

The Russia operations would have accounted for 13% of the company’s global production this year.