Kinross Gold Entered Into Agreement to Offload Russian Assets

SEATTLE (Scrap Monster): Toronto-headquartered Kinross Gold Corporation announced that it has entered into a definitive agreement with the Highland Gold Mining group of companies and its affiliates towards sale of 100% of its Russian assets for a total consideration of $680 million in cash. The transaction is subject to final approval by the Russian government and the finalization of certain ancillary agreements.

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According to the agreement, Kinross Gold will receive $400 million in cash for the Kupol mine and the surrounding exploration licenses. This includes payment of $100 million upon closing, deferred payment of $150 million before end-2023, $100 million before end-2024 and $50 million before end-2025.

The balance $280 million will be paid for Udinsk project. This includes payment of $80 million before end-2025, $100 million before end-2026 and the remaining $100 million before end-2027.

The deferred payments are secured by an extensive security package. Also, all payments under the agreement are to be payable in US dollars.

It must be noted that Kinross Gold had suspended operations at its Kupol mine and Udinsk project in early-March this year, when it declared that it is on the lookout for a potential buyer for its Russian assets.