Highland Gold Mining Limited entered into a definitive agreement to acquire Russian Assets of Kinross Gold Corporation (TSX:K) for $680 million on April 5, 2022. As part of the transaction, Kinross Gold Corporation will receive a total of $400 million in cash for the Kupol mine and the surrounding exploration licenses, which includes payment of $100 million upon closing, as well as additional payments of $150 million before the end of 2023, $100 million before the end of 2024, and $50 million before the end of 2025. Kinross Gold Corporation will also receive a total of $280 million in cash for its Udinsk project, which includes payments of $80 million before the end of 2025, $100 million before the end of 2026, and $100 million before the end of 2027. The deferred payments are secured by an extensive security package that includes share pledges, financial guarantees, and an escrow account. Bank financing will not be required for the initial payment. The transaction is subject to the approval of the Russian government and the finalization of certain ancillary agreements. The deal was supported by Russian Ministry of Industry and Trade. As disclosed on April 5, 2022, the previously agreed total consideration for the transaction was $680 million, which included a payment of $100 million upon closing, with the remaining $580 million scheduled to be received in annual payments from 2023 through to 2027. The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments, which approved this transaction for a purchase price not exceeding $340 million. With the approval and completion of the sale, Kinross has divested all of its interests in Russia and has no further obligations or liabilities in the country. Jonathan Angell of Dechert LLP acted as legal advisor to Kinross Gold Corporation. Latham & Watkins LLP acted as financial advisor to Highland Gold Mining Limited.

Highland Gold Mining Limited completed the acquisition of Russian Assets of Kinross Gold Corporation (TSX:K) on June 15, 2022.