Canadian miner Kinross Gold Corp. closed its US$283 million acquisition of the Chulbatkan gold project the Khabarovsk region in Russia's Far East from N-Mining Ltd.
Kinross said Jan. 16 that it received approval from Russian antitrust regulators in October 2019 and noted that all other conditions precedent regarding the acquisition are now satisfied.
The company said the July 2019 deal was amended to allow it to pay the first installment of US$141.5 million in cash. The amendment also granted Kinross an option to settle at least 60%, and up to 100%, of the final installment of US$141.5 million in shares. The final installment is due on the first anniversary of the deal's close.
The company expects to spend US$10 million on initial drilling at Chulbatkan. An updated resource base is expected by year-end.
Kinross plans to convert the property's estimated resources to reserves and deliver pre-feasibility and feasibility studies within three years. It also aims to finish construction within two years.
Based on its due diligence, Kinross estimated Chulbatkan contains about 3.9 million ounces of gold in the indicated category and 80,000 ounces of gold in the inferred category.
The footprint of the current Chulbatkan resource represents less than 1% of the total 120-square-kilometer license area, which hosts multiple untested high-quality targets, the company said