(Alliance News) - Highland Gold Mining Ltd said Tuesday it has agreed to sell the Kayenmivaam licence in Chukotka, Russia, to an undisclosed buyer for USD15 million plus a royalty.
The gold miner will receive a 2% royalty on gold produced and sold from the deposit in excess of 500,000 ounces for 30 years.
Kayen is an early-stage gold exploration property covering 1,214 square kilometres, which Highland Gold acquired as an add-on to the Valunisty acquisition in December 2018.
The sale is subject to approval by Russia's Federal Anti-Monopoly Service and is expected to be completed later in 2020.
The deal will give Highland Gold an immediate cash payment, in a capital-intensive year during which the company will invest in construction of Kekura and the completion of improvement projects at the Belaya Gora and Novoshirokinskoye mines.
Shares in Highland Gold Mining were up 0.6% at 260.82 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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