High River ups its stake in Buryatzoloto

High River Gold Mines (HRG-T) has reached agreement to acquire Japan-based Jipangu’s 16.9% interest in Buryatzoloto, the third-largest gold producer in Russia, for the issuance of 5.1 million shares.

Under the deal, High River’s interest in Buryatzoloto would increase to 43.4% of the voting shares and Jipangu’s interest in High River would climb to 32.5%.

The deal is subject to shareholder and regulatory approval, including approval by the Ministry of the Russian Federation for Anti-Monopoly and Support of Businesses.

Buryatzoloto owns and operates the high-grade Irokinda and Zun-Holba underground gold mines in the Republic of Buryatia in southern Siberia. During 2000, Buryatzoloto produced 127,128 oz. gold (up 26% from a year earlier) at a total cash cost of US$165 per oz. Gold production for 2001 is forecast at 140,000 oz. For the first three months of 2001, production tallied 35,266 oz. at US$159 per oz.

At the end of 2000, Buryatzoloto’s gold reserves and resources totalled 5.3 million oz., based on a gold price of US$300 per oz.

During 2000, the company spent US$5.9 million on exploration and equipment, resulting in the discovery of four high-grade, low-cost veins. It plans to convert the mill at one of its mines from seasonal to year-round operation.

High River says it is negotiating to acquire another 8% interest in Buryatzoloto. This would give the company a 51% interest.

Print


 

Republish this article

Be the first to comment on "High River ups its stake in Buryatzoloto"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close