Higher price nixed by Russian Sub-commission on the Control of Foreign Investments
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Kinross Gold Corp. has sold all its Russian assets to the Highland Gold Mining group of companies, but the Canadian miner will realize just half the $680 million in proceeds agreed to in April, following a review by the recently formed Russian Sub-commission on the Control of Foreign Investments.
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The Russian sub-commission “approved this transaction for a purchase price not exceeding $340 million,” Kinross said in a statement Wednesday.”
Kinross has received $300 million in U.S. dollars in its corporate account and will receive a deferred payment of $40 million on the one-year anniversary of closing.
The $680 million previously agreed to in April was to include an initial payment of $100 million on closing, with the remaining $580 million scheduled to be received in annual payments from 2023 through to 2027.
“After the completed divestment of our Russian business, Kinross’ rebalanced portfolio maintains a substantial production outlook anchored by its two tier one assets – Tasiast and Paracatu – as well as a strong portfolio of mines in the Americas, a growing business in Chile, and the large, world-class Great Bear project in Canada,” said J. Paul Rollinson, president and chief executive of Kinross.
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“With the approval and completion of the sale, KGC (Kinross) has divested all of its interests in Russia and has no further obligations or liabilities in the country,” the analyst wrote.
“The company can now focus its efforts on its operating assets/projects in the Americas and its mill expansion at Tasiast (Mauritania).”
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