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Disposal

29 Apr 2009 07:00

RNS Number : 3275R
Highland Gold Mining Limited
29 April 2009
 



HIGHLAND GOLD AGREES TO SELL THE MAYSKOYE DEVELOPMENT PROJECT

29 April 2009 - The Board of Highland Gold Mining Limited ("Highland Gold", or the "Company") announces today that following a detailed review of the Company's Mayskoye Development Project ("Mayskoye") it agreed to sell the issued share capital of its subsidiary Zolotrudnaya Kompaniya Mayskoye Limited Liability Company, which owns the asset, for a cash consideration of US$105 million to a group of Russian companies, one of which is JSC Polymetal and none of which is connected with any of Highland Gold's directors or major shareholders. The transaction was completed on 28 April 2009.

Mayskoye is located in the Chukotka region of North East Russia and was acquired by Highland Gold in 2003. Mayskoye contributed a US$6 million loss to the Company in the financial year ended 31 December 2007, being the last reported full year financial period. The Company completed a feasibility study for the project in the second quarter of 2008 and the project cost estimate was anticipated at US$500 million. Shortly after the completion of this study, the Company decided to reduce work activity and conduct a detailed review of the project under current market conditions.  Following this review of Mayskoye, including preparation for construction, the capital cost and the overall challenges of the asset, the Board concluded that the sale of Mayskoye for US$105 million was in the best interests of the Company.

The unaudited carrying value of Mayskoye as at 31 December 2008 was US$210 million. There is anticipated to be an impairment charge of approximately US$110 million which will be recorded as a result of this transaction. However, the Company expects cost savings principally in the form of capital expenditure. These capital cost reductions combined with the proceeds from the sale of Maskoye will improve further the Company's liquidity position, helping Highland Gold to continue to pursue its growth strategy of investing in further early production assets, strategic exploration in Russia and the CIS countries and utilising cash resources in developing its other assets.

For further information please contact:

Highland Gold - 

Dmitry Yakushkin, Head of Communications - +7 495 777 3155

Duncan Baxter, Chairman - +44 (0) 1534 814202

Fin Public Relations - 

Alex Glover - +44 (0) 207 608 2280

Smith's - 

Dominic Palmer-Tomkinson - +44 (0) 207 239 0140

J.PMorgan Cazenove (Nominated Adviser) -

Michael Wentworth-Stanley, Managing Director 

Sam Critchlow - +44 (0) 207 588 2828

www.highlandgold.com

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DISPUUBACUPBGMR
Date   Source Headline
1st Sep 20202:46 pmBUSForm 8.3 - Highland Gold Mining
1st Sep 202011:45 amRNSForm 8.5 (EPT/NON-RI)
1st Sep 202011:16 amRNSHolding(s) in Company
1st Sep 202010:59 amBUSFORM 8.3 - HIGHLAND GOLD MINING LTD
1st Sep 20209:32 amRNSForm 8.5 (EPT/RI)
1st Sep 20207:00 amRNSInterim Results Announcement for H1 2020
1st Sep 20207:00 amRNSForm 8.3 - Highland Gold Mining Limited
31st Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
28th Aug 20203:17 pmBUSForm 8.3 - Highland Gold Mining
28th Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
28th Aug 202012:37 pmPRNForm 8.3 - Highland Gold Mining Ltd
28th Aug 202011:40 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
28th Aug 202010:54 amRNSInterim Results Announcement Date
28th Aug 20209:25 amRNSForm 8.3 - [HIGHLAND GOLD MINING LTD]
28th Aug 20209:19 amRNSForm 8.5 (EPT/RI)
28th Aug 20207:00 amRNSForm 8.3 - Highland Gold Mining Limited
27th Aug 20204:11 pmBUSForm 8.3 - Highland Gold Mining Ltd
27th Aug 20203:41 pmBUSForm 8.3 - Highland Gold Mining
27th Aug 20203:04 pmPRNForm 8.3 DD - Highland Gold Mining
27th Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
27th Aug 202012:23 pmPRNForm 8.3 - Highland Gold Mining Ltd
27th Aug 20209:19 amRNSForm 8.5 (EPT/RI)
26th Aug 20203:14 pmBUSForm 8.3 - Highland Gold Mining
26th Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
26th Aug 20201:12 pmBUSForm 8.3 - HIGHLAND GOLD MINING LTD
26th Aug 202011:00 amRNSForm 8.5 (EPT/NON-RI)
26th Aug 20209:25 amRNSForm 8.5 (EPT/RI)
25th Aug 20204:36 pmBUSForm 8.3 - HIGHLAND GOLD MINING LTD
25th Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
25th Aug 202012:45 pmPRNForm 8.3 - Highland Gold Mining Ltd
25th Aug 20209:03 amRNSForm 8.5 (EPT/RI)
24th Aug 20202:55 pmEQSForm 8.3 - Tibra Trading PTY Limited: Highland Gold Mining Ltd
24th Aug 202012:12 pmBUSForm 8.3 - Highland Gold Mining Ltd
24th Aug 202010:09 amRNSForm 8.5 (EPT/NON-RI)
24th Aug 20209:35 amRNSForm 8.5 (EPT/RI)
21st Aug 20202:45 pmEQSForm 8.3 - Tibra Trading PTY Limited:
21st Aug 20201:34 pmBUSForm 8.3 - Highland Gold Mining Ltd - Amendment
21st Aug 202011:10 amRNSForm 8.5 (EPT/NON-RI)
21st Aug 202011:01 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
21st Aug 20209:35 amRNSTR-1: Form for notification of major holdings
21st Aug 20208:55 amRNSForm 8.5 (EPT/RI)
20th Aug 202010:48 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
20th Aug 20209:38 amRNSForm 8.3 - [HIGHLAND GOLD MINING LTD]
20th Aug 20209:20 amRNSForm 8.5 (EPT/RI)
20th Aug 20209:20 amRNSForm 8.5 (EPT/NON-RI)
20th Aug 20208:52 amRNSForm 8.5 (EPT/RI) - Highland Gold Mining Ltd
19th Aug 202011:00 amBUSFORM 8.3 - HIGHLAND GOLD MINING LTD
19th Aug 202010:06 amRNSForm 8.3 - [HIGHLAND GOLD MINING LTD]
19th Aug 20209:44 amRNSForm 8.5 (EPT/RI)
19th Aug 20209:40 amRNSForm 8.5 (EPT/NON-RI)

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