(Bloomberg) -- Kinross Gold Corp. agreed to sell its Russian assets to a company controlled by mining magnate Vladislav Sviblov for $680 million, keeping a pledge to exit the country after the invasion of Ukraine.
Most of the cash in the sale to Highland Gold Mining Ltd. is deferred. Kinross is to receive $100 million on closing and $150 million next year, with the rest due between 2024 and 2027, the Toronto-based gold producer said in a statement.
Kinross had indicated at first it would carry on with its Russia operations, which are in the country's Far East and were projected to provide about 13% of the company's production this year. But it changed course in early March, suspending operations at its Kupol mine and Udinsk project and beginning the search for a buyer.
The deal is subject to Russian government approval and the completion of ancillary agreements, “which is a potentially significant hurdle,” National Bank Financial analyst Mike Parkin said in a note. Still, the deal is “fair to good value given the circumstances,” he said.
Kinross rose 0.1% to C$7.51 at 11:10 a.m. in Toronto. The stock has risen 2.3% this year, lagging the 4.1% gain of Canada's benchmark S&P/TSX Composite Index.
Sviblov's Fortiana Holdings Ltd. took over Highland in 2020 after buying a 40% stake from billionaire Roman Abramovich and other investors in a deal that valued the Russia-focused miner at about $1.4 billion.
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