Canadian gold miner Kinross Gold said on Tuesday that its 75%-owned subsidiary, Chukotka Mining and Geological Company located in Russia’s easternmost region of Chukotka, signed a deal with the regional government to repurchase 2.292 million of its shares or 25.01% of its share capital for about $350 million.
On completion of the transaction, Kinross will own 100% of Chukotka Mining and Geological Company, which in turn holds both the Kupol gold and silver mine and the Kupol East-West exploration licences in the Chukotka region, the company said in a statement.
“The transaction will consolidate Kinross’ ownership of a world-class mine, located in a key region, with significant production, low costs and strong cash flow. Based on Kinross’ pre-transaction (75%) interest, Kupol is expected to account for 17% of the company’s gold equivalent production in 2011 and is expected to remain one of the key operations in Kinross’ portfolio going forward,” the firm said.
The transaction received pre-approval from Russia’s State Commission for Control of Foreign Investments on March 25, 2011, Kinross said.
In 2010 gold and silver output in Chukotka amounted to 24.4 tons and 218.2 tons respectively, which made the region Russia’s second largest gold producer.
MOSCOW, April 5 (RIA Novosti)