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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
19th Aug 20208:33 amRNSForm 8.3 - Highland Gold Mining Ltd
19th Aug 20207:52 amBUSForm 8.3 - Highland Gold Mining Ltd - Amendment
18th Aug 20204:30 pmBUSForm 8.3 - Highland Gold Mining
18th Aug 20204:13 pmBUSForm 8.3 - HIGHLAND GOLD MINING LTD
18th Aug 202010:32 amRNSForm 8.3 - [HIGHLAND GOLD MINING LTD]
18th Aug 20209:57 amRNSForm 8.5 (EPT/NON-RI)
18th Aug 20209:34 amRNSForm 8.5 (EPT/RI)
17th Aug 20205:11 pmRNSForm 8.3 - Highland Gold Mining Ltd
17th Aug 202012:22 pmPRNForm 8.3 - Highland Gold Mining Ltd
17th Aug 202011:03 amRNSForm 8.3 - [HIGHLAND GOLD MINING LTD]
17th Aug 202010:27 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
17th Aug 202010:07 amRNSForm 8.5 (EPT/NON-RI)
17th Aug 20209:36 amRNSForm 8.5 (EPT/RI)
17th Aug 20207:00 amRNSHighland Gold Publishes Sustainability Report
14th Aug 20204:12 pmRNSForm 8.3 - Highland Gold Mining Ltd. - Amendment
14th Aug 20204:11 pmRNSForm 8.3 - Highland Gold Mining Ltd - Amendment
14th Aug 20203:44 pmRNSForm 8.3 - Highland Gold Mining Ltd.
14th Aug 20202:33 pmBUSForm 8.3 - Highland Gold Mining
14th Aug 20202:03 pmRNSForm 8.3 - Highland Gold Mining Limited
14th Aug 202011:44 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
14th Aug 20209:48 amRNSForm 8.5 (EPT/NON-RI)
14th Aug 20209:47 amRNSForm 8.3 - [LMR Partners/Highland Gold Mining]
14th Aug 20209:28 amRNSForm 8.3 - Highland Gold Mining Limited
14th Aug 20208:51 amRNSForm 8.5 (EPT/RI)
13th Aug 20204:53 pmRNSForm 8.3 - Highland Gold Mining Ltd
13th Aug 20202:43 pmRNSForm 8.3 - Highland Gold Mining Limited
13th Aug 20201:10 pmRNSForm 8.3 - Highland Gold Mining
13th Aug 202012:34 pmPRNForm 8.3 - Highland Gold Mining Ltd
13th Aug 202011:11 amBUSForm 8.3 - HIGHLAND GOLD MINING LTD
13th Aug 20209:42 amRNSForm 8.5 (EPT/NON-RI)
13th Aug 20209:28 amRNSForm 8.5 (EPT/RI)
13th Aug 20209:07 amRNSForm 8.3 - Highland Gold Mining Limited
12th Aug 20203:07 pmBUSForm 8.3 - Highland Gold Mining
12th Aug 20202:25 pmRNSForm 8.3 - Highland Gold Mining Limited
12th Aug 20201:55 pmPRNForm 8.3 - Highland Gold Mining Ltd
12th Aug 202011:26 amRNSForm 8.5 (EPT/NON-RI)
12th Aug 202010:23 amBUSFORM 8.3 - HIGHLAND GOLD MINING LTD
12th Aug 20209:20 amRNSForm 8.5 (EPT/RI)
12th Aug 20208:43 amRNSRegulatory Application
11th Aug 20202:58 pmRNSForm 8.3 - Highland Gold Mining Limited
11th Aug 20201:38 pmPRNForm 8.3 - Highland Gold Mining Ltd
11th Aug 202012:30 pmRNSForm 8 (OPD) - Fortiana Holdings Limited
11th Aug 202011:01 amRNSForm 8.5 (EPT/RI)
11th Aug 202010:52 amRNSForm 8 (DD) - Highland Gold Mining Limited
11th Aug 202010:43 amRNSForm 8.5 (EPT/NON-RI)
11th Aug 202010:13 amBUSFORM 8.3 - HIGHLAND GOLD MINING LTD
11th Aug 20209:09 amRNSForm 8.5 (EPT/RI) - Highland Gold Mining Ltd
11th Aug 20207:00 amRNSForm 8.3 - Highland Gold Mining Limited
11th Aug 20207:00 amBUSForm 8.3 - Highland Gold Mining Limited - Replacement
10th Aug 202012:19 pmRNSForm 8 (DD) - Highland Gold Mining Ltd

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