Aim-listed Highland Gold Mining has entered into an agreement for the sale of the Kayenmivaam (Kayen) licence for $15-million in cash, plus a royalty.
Kayen is an early-stage gold exploration property covering 1 214 km2 in the Chukotka region of Russia.
Highland received the licence as an add-on to the Valunisty acquisition in December 2018. The site's distance from the Valunisty mine and from the company's premier development project, Kekura, precludes any operational synergies, and the project is considered to be a noncore asset.
Highland will now sell its wholly-owned subsidiary SVGGK, holder of the Kayen licence, to an unrelated party for $15-million to be paid in two equal instalments, the first at closing and the second following the legal transfer of shares.
In addition, the company will receive a 2% royalty on gold produced and sold from the deposit in excess of 500 000 oz for a period of 30 years.
The transaction is subject to approval by Russia's Federal Anti-Monopoly Service and is expected to be completed later this year.