TORONTO (miningweekly.com) – TSX-listed High River Gold Mines has decided not to complete the acquisition of a nickel deposit in Russia, the firm said on Wednesday.

High River, through its 85%-owned subsidiary Buryatzoloto, won the right to buy the asset in an auction held by the Russian Ministry of Natural Resources last February.

The company paid an initial $4,15-million at the time, which has now been written off.

A second and final payment, of some $5-million, will not be made and no further costs associated with the project will be incurred, High River said in a statement.

The Federal Mining Agency of Russia has confirmed Buryatzoloto's request to annul the auction results.

High River produces gold from three mines in Russia and one in Burkina Faso.

Shares in the company gained 6,25% on Wednesday, to C$0,17 apiece by 15:24 in Toronto.

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