Russia-focused HGM says to sell Kayenmyvaam field for $15 mln

MOSCOW, Jun 2 (PRIME) -- U.K. Highland Gold Mining (HGM), which mines gold in Russia, has signed an agreement to sell the Kayenmyvaam, or Kayen, field in the Chukotka Autonomous District for U.S. $15 million plus royalty, the company said in a statement on Tuesday.

The company agreed to sell 100% in subsidiary SVGGK LLC that owns the license for the field. The sum is to be paid in two equal parts, the first part is to be transferred at the closure of the deal and the second after the legal transfer of shares.

Besides that, the company will get a 2% royalty for the gold produced at the field and sold in the amount exceeding 500,000 ounces in the next 30 years.

“The site’s distance from the Valunisty mine and from the company’s premier development project, Kekura, preclude any operational synergies, and the project was considered to be a non-core asset,” HGM said.

The deal, expected to close this year, is subject to approval of the Federal Antimonopoly Service.

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