British Highland Gold Mining increases share in Russian gold mine
Azerbaijan, Baku, Dec. 30 / Trend E. Kosolapova/
British Highland Gold Mining Limited (HGM) acquired 48.3 percent share in the Novo-Shirokinskiy Rudnik from Kazakh Mining Kazzinc through its wholly owned subsidiary Stanmix Holding Limited, HGM reported on Thursday.
Novo-Shirokinskiy Rudnik is the owner of the Russian Novoshirokinskoye gold mine. The deal was completed following the Russian anti-monopoly authorities' approval.
According to the terms of the transaction, the existing offtake arrangements with Kazzinc will continue throughout 2012.
This acquisition will result in the HGM 's stake in Novo increasing to 96.6 percent.
The company will shortly notify the remaining minority Novo shareholders of their right to redeem 3.4 percent of the voting shares owned by them.
Novo is located in the Zabaikalsky region of Russia. The processing plant commissioned in the mine produced 59,403 ounces of gold and gold equivalents during 2010. Revenue over the same period was $70.8 million and profit after tax was $36.6 million.
The acquisition will increase Highland Gold's current gold and gold equivalents production by an estimated 16 percent, in addition to improving the proven and probable reserve base (JORC compliant) by approximately 800,000 ounces of gold and gold equivalents.