GOLD HOLDINGS: Barrick to sell Russian interest

TORONTO – Barrick Gold has announced plans to sell its 20.4% interest in the Russian producer, Highland Gold. Purchased 10 years ago, this is Barrick’s only exposure to the Russian mining industry. The largest Highland Gold shareholder at 40% is Primerod, an investment vehicle of Russian financier Roman Abramovich.

Highland owns two producing mines – MNV (Mnogovershinnoe) and Novoshirokinskoe (Novo) – that together produced slightly more than 200,000 oz AuEq in 2010. According to that year’s annual report, the total cash costs at MNV were US$496/oz Au, and the company made a gross profit of US$119 million. A third mine, Belaya Gora, was in the commissioning stage and two advanced exploration projects are being fast-tracked.

The divestiture is proceeding on a reportedly amicable basis. Barrick has promised t divest its ownership in an orderly manner and expressed confidence in the Highland board and management.

See HighlandGold.com to learn more about this company.