Highland Gold Mining has signed an agreement to purchase an operating mine and two exploration licence areas in the Russian region of Chukotka for a consideration of $91m.

The assets are set to be secured via the acquisition of a 100% interest in three companies from Cyprus-registered Aristus Holdings.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Highland will be required to issue 38,621,343 ordinary shares worth around $78.7m under the arrangement.

"This acquisition adds a fourth operating mine, Valunisty, to our portfolio, as well as positive upside potential in the surrounding KAS licence area."

The deal also includes the assumption of approximately $12.3m of net debt.

The proposed acquisition includes Valunisty, an operating gold mine and processing plant with annual production of 31,000 ounces (oz), as well as the Kanchalano-Amguemskaya Square (KAS) and Kayenmivaam (Kayen) exploration licences.

Highland Gold Mining CEO Denis Alexandrov said: “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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The transaction is structured in such a way as to be immediately value-accretive to the benefit of all our shareholders.”

The KAS licence covers the area surrounding Valunisty and hosts several satellite deposits, including the operating Gorny open pit and Zhilny deposit, while Kayen is located 130km to the south-east of Kinross Gold’s Kupol mine and contains multiple target deposits.

Valunisty and KAS have total proven and probable ore reserves of 3.4 million tonnes (Mt) at 5.1 grams per tonne (g/t) of gold equivalent as of 1 January, in addition to indicated and inferred mineral resources of 17.6Mt at 3.0g/t of gold equivalent.