Kinross announces sale of Russian assets
Kinross announces sale of Russian assets
(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
TORONTO, April 05, 2022 -- Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross”) announced today that it has entered
into a definitive agreement (“Agreement”) with the Highland Gold Mining group of companies (“Highland Gold”) and its affiliates
to sell 100% of its Russian assets for total consideration of $680 million in cash.
As part of the transaction, Kinross will receive a total of $400 million in cash for the Kupol mine and the surrounding
exploration licenses, which includes payment of $100 million upon closing, as well as additional payments of $150 million
before the end of 2023, $100 million before the end of 2024, and $50 million before the end of 2025. Kinross will also receive a
total of $280 million in cash for its Udinsk project, which includes payments of $80 million before the end of 2025, $100 million
before the end of 2026, and $100 million before the end of 2027.
The deferred payments are secured by an extensive security package that includes share pledges, financial guarantees and
an escrow account. All payments under the Agreement are payable in U.S. dollars.
Highland Gold is one of the largest gold mining companies in Russia and operates several mines in the country, including in
the Chukotka and Khabarovsk regions where the Kupol mine and Udinsk project are located, respectively.
The transaction is subject to the approval of the Russian government and the finalization of certain ancillary agreements.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia,
Mauritania, Chile, Ghana and Canada. Our focus is on delivering value based on the core principles of operational excellence,
balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
Cautionary statements on forward-looking information
All statements, other than statements of historical fact, contained in this news release, including any information as to the
future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements”
within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the “safe harbor”
provisions under the United States Private Securities Litigation Reform Act of 1995 and are based on the expectations,
estimates and projections of management as of the date of this news release, unless otherwise stated. Forward-looking
statements contained in this presentation include, without limitation, statements with respect to the completion and timing of
the sale of its Russian assets; the schedule of payments in secured instalments over the next five years; and projected timing
of Russian government approvals. Phrases or statements that certain actions, events or results may, could, should or will be
achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-
looking statements are, necessarily, based upon a number of estimates and assumptions that, while considered reasonable
by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. The estimates and assumptions of Kinross contained in this news release, which may prove
to be incorrect, include, but are not limited to: (i) that the parties will complete the acquisition in accordance with, and on the
timeline contemplated by, the terms and conditions of the relevant agreements, on a basis consistent with our expectations;
(ii) that, in the event any deferred payment is not paid to Kinross, the security package, including share pledges, financial
guarantees and an escrow account, will be realized and enforceable in a manner consistent with the Company’s expectations;
(iii) that economic and sectoral sanctions (or similar laws) will not adversely impact the transaction or the parties’ ability to
discharge their obligations under the transaction agreements, including payment of the purchase price; and (iv) that the
necessary approvals from the applicable Russian government authorities will be obtained in a timely manner, or at all. There
can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements, including the risk that the sale transaction will not be completed for any
reason and that the secured installment payments are actually paid to Kinross. Forward-looking statements are provided for
the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-
looking statements made in this news release are qualified by this cautionary statement and those made in our other filings
with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in
the “Risk Analysis” section of our MD&A for the year ended December 31, 2021 and the Annual Information Form dated March
31, 2022. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross
disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference
between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Source: Kinross Gold Corporation