26th Apr 2018 10:47
LONDON (Alliance News) - Highland Gold Mining Ltd said Thursday that it will acquire an operating mine and two exploration licence areas in the Russian region of Chukotka for USD91 million.
The gold miner has entered into a subscription agreement with Cyprus-registered Aristus Holdings Ltd. to acquire three companies owning the gold mine and licence areas. The deal consideration includes USD78.7 million via issue of 38.6 million shares and debt of USD12.3 million.
The assets under the deal covers Valunisty gold mine and processing plant with annual production of capacity of 31,000 ounces, the Kanchalano-Amguemskaya Square LLC licence and the Kayenmivaam exploration licence.
The Kanchalano-Amguemskaya licence covers territory surrounding Valunisty and hosts several satellite deposits including the operating Gorny open pit and Zhilny deposit. The Kayenmivaam licence with several promising target deposits is located 130 kilometers southeast of Kinross Gold's Kupol mine.
Proven and Probable ore reserves for Valunisty and Kanchalano-Amguemskaya are estimated at 3.4 million tonnes at 5.1 grams per tonne of gold equivalent. Indicated and inferred mineral resources are estimated at 17.6 million tonnes at 3.0 grams per tonne gold equivalent
"This acquisition adds a fourth operating mine, Valunisty, to our portfolio as well as positive upside potential in the surrounding KAS licence area, all in a familiar region with existing mining infrastructure. The transaction is structured in such a way as to be immediately value-accretive to the benefit of all our shareholders," Highland Gold Chief Executive Denis Alexandrov said.
Shares in Highland Gold were trading 0.5% higher at 142.60 pence on Thursday.
Related Shares:
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