Highland Gold's portfolio of assets include four operating mines and one mine under construction
Fortiana has agreed to acquire 40% stake in Highland Gold Mining (Highland Gold), which is one of Russia’s leading gold producers.
Highland Gold operates in the regions of Khabarovsk, Zabaikalsk and Chukotka, which are among the top ten gold producing regions in Russia.
As per the terms of the deal, Fortiana will acquire approximately 145,759,871 Highland Gold Shares at a price of £3.00 per share.
The shares will be acquired from Roman Arkadievich Abramovich, Eugene Shvidler, Irina Alexandrovna Panchenko, Andrey Victorovich Gorodilov, Aleksey Leonidovich Polezhaev, New Evolution Trading, Matteson Overseas and Denalot Worldwide.
Engaged in gold mining operations, Highland Gold’s portfolio of assets include four operating mines, one mine under construction and a pipeline of development projects.
Headquartered in Saint Helier, Jersey, the company explores gold, silver, zinc, and lead and also offers project engineering services.
Fortiana to finance the purchase using a loan from VTB Bank
Fortiana ultimate beneficial owner Vladislav Sviblov said: “This is a strategic investment for us, in line with our aim to build a broader asset portfolio in the natural resources sector in Russia.
“This transaction adds to our existing strategic investments like the Ozernaya Mining Company, which is developing zinc-lead and gold-zinc deposits, as well as several gold mining assets and prospective deposits in the Zabaikalsk region.”
Highland Gold’s independent directors are being advised by Citigroup and have recommended shareholders to accept the Fortiana’s offer.
Furthermore, Fortiana is planning to finance the acquisition of stake in Highland Gold, using a loan from Russia’s VTB Bank.
Kekura is the company’s main development project, which also serves as an expansion of its operations in the Chukotka Region.