SEATTLE (Scrap Monster): Kinross Gold Corporation announced that it has completed sale of 100% interest in its Russian assets to the Highland Gold Mining group of companies for total consideration of $340 million in cash. This is at half the previously agreed price. Kinross received an upfront payment of $300 million in U.S. denominated cash. Also, it will receive a deferred payment of $40 million on the first anniversary of the closing of the transaction.
As per the earlier agreement announced in early-April this year, the sale was for a total consideration of $680 million, which includes a payment of $100 million upon closing, with the remaining $580 million as scheduled deferred annual payments from 2023 through to 2027.
The transaction amount was reduced to half the original price, following review by the Russian Sub-commission on the Control of Foreign Investments, which put a maximum value of $340 million for the transaction.
With the completion of the sale, Kinross Gold has divested all of its assets in Russia. It now has no further obligations or liabilities in the country.
J. Paul Rollinson, President and CEO, Kinross thanked its Russian workforce for their dedication, professionalism and hard work. The commitment to safety and the environment, especially during the transition phase, has been exemplary, he added.