Dechert LLP acted as legal advisor to Kinross Gold Corporation in the transaction. Scotiabank Europe plc is acting as financial advisor to Kinross Gold Corporation.
Kinross Gold Corporation (TSX:K; NYSE: KGC) entered into an agreement with N-Mining Limited to acquire Chulbatkan, a high-quality, heap leach development project with significant upside potential and low relative execution risk, for total fixed consideration of $283 million.
The deal, which required extensive due diligence of the subsoil license holding company, includes approximately US$113 million in cash and US$170 million in Kinross stock, plus 1.5% contingency payments. The acquisition is a strategic addition to Kinross’s existing mining operations, as it is expected to be a high yield, yet low-cost operation.
In addition, N-Mining will have the right to economic participation equivalent to a 1.5% net smelter return (NSR) payment and contingent consideration linked to future reserve additions.
Dechert’s team was led by corporate partner Laura Brank (Picture), head of the firm’s Russia practice, together with associate Kirill Skopchevskiy. National partner Evgenia Korotkova and associates Maryana Batalova and Pavel Dunaev also supported on the transaction.
Law Firms: Dechert;
Clients: Kinross Gold Corporation;