LLC Klen holds the mining and exploration rights to the Klen gold deposit and the surrounding Verkhne-Krichalskaya property located in north eastern Russia.
The acquisition is subject to conditions precedent, including obtaining required regulatory approvals.
Highland Gold Mining chairman Eugene Shvidler said the Klen deposit is an additional extension of the company’s asset base and will have an immediate effect on its resources.
"Production is scheduled to commence in 2015 and will benefit prospective output. We believe that the Klen operation could benefit significantly from the exploration potential of the Verkhne-Krichalskaya area," said Shvidler.