Dechert Advises on Kinross Gold’s Proposed Acquisition of Major Gold Deposit in Russia

Dechert LLP acted as legal advisor to Kinross Gold Corporation in its recently announced plans to acquire Chulbatkan, a high-quality, heap leach development project in Russia, from N-Mining Limited for a total fixed consideration of US$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.

Dechert’s team was led by corporate partner Laura Brank, 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.

Kinross has been operating in Russia for 24 years. Moscow office managing partner Laura Brank has advised the company on more than US$4 billion in M&A transactions in Russia during this time, including its US$368 million indirect acquisition of the high-grade Dvoinoye deposit and the Vodorazdelnaya property in 2010. Kinross is the largest foreign investor in Russia’s gold mining and the largest Canadian investor in the Russian economy.

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