Canada’s Kinross Gold Corp said on Wednesday it had sold all of its Russian assets to the Highland Gold Mining Group for $340 million in cash, half of the previously announced price.
The Toronto-based miner said in April it would sell its Kupol mine and Udinsk project to Highland Gold, one of the largest gold miners in Russia, for $680 million.
“The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments,” Kinross said, adding the sale was approved for a price not exceeding $340 million.
Russian authorities in March had stipulated that any transaction between Russians and foreign counterparties requires permission from the commission, saying it wanted to ensure decisions to exit were considered and not driven by political pressure.
Highland Gold operates several mines in the country, including in Chukotka and Khabarovsk regions where the Kupol mine and Udinsk project are located.
U.S.-listed shares of Kinross were up 3% in premarket trading, mirroring gains in other gold miners on a stronger bullion.
(Reporting by Ruhi Soni in Bengaluru; Editing by Sriraj Kalluvila)