TORONTO (miningweekly.com) – TSX-listed High River Gold was unable to come to an agreement for an extension of the closing date for the acquisition of the 50% stake in the Prognoz silver project that it does not own, and so the deal has been terminated.

The deadline for the deal had already been extended once, and has now expired on November 30.

“The parties were unable to agree to mutually satisfactory terms for the extension of the agreement, with the result that the Prognoz agreement has been terminated in accordance with its terms,” High River said in a statement.

Prognoz, located in the Republic of Sakha in Russia, is one of the largest and highest grade undeveloped silver projects in the world, according to the company.

The transaction  required the approval of the Ministry of the Russian Federation for Anti-Monopoly Policy and Support of Businesses, which had not been received.

High River had cautioned in October that the future of the company was in doubt unless it could successfully raise funds, but announced last month that it would raise $45-million through a private placement with a subsidiary of Russian steelmaker, Severstal.

Shares in High River Gold slid 5% on Thursday, to C$0,095 apiece by 15:51 in Toronto.

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