British Highland Gold Mining to increase share in Russian mine
Azerbaijan, Baku, Nov. 23 / Trend E. Kosolapova/
British Highland Gold Mining (HGM), working in Russia, bought a 48.3 percent share in the Novo-Shirokinskiy Rudnik company from Kazakh Mining Kazzinc, HGM reported on Wednesday.
Novo-Shirokinskiy Rudnik is the owner of the Russian Novoshirokinskoye gold mine.
"HGM's stake in Novo-Shirokinskiy Rudnik will increase to 96.6 percent following the agreement approval."
According to the report, the transaction is expected to be completed before late 2011 following the approval of Russian anti-monopoly authorities and completion of certain legal documentation.
"The total consideration for this transaction is $110 million of which $47 million accounts for Kazzinc's 48.3 percent share in Novo-Shirokinskiy Rudnik and $63 million to be paid as repayment of Kazzinc's share of inter-company's debt.
Mining work on Novoshirokinskoye mine was launched on October 2009.
Highland Gold is among the ten largest gold mining companies in Russia. In 2010, Highland Gold increased gold production by 23 percent compared to 2009 index to 200.028 ounces (6.2 tons).