The Pepeliaev Group has advised the Netherlands' Cupol Ventures Limited — a member of Canadian gold-mining group Kinross Gold — on tax matters related to its USD 283 million acquisition of the Chulbatkan gold project in Russia from N-Mining.
The deal includes approximately USD 113 million in cash and nearly USD 170 million in Kinross shares. N-Mining will also have the right to economic participation equivalent to a 1.5% net smelter return payment and contingent consideration linked to future additions in a production capacity.
Kinross Gold president and CEO Paul Rollinson said: “Chulbatkan is an exciting high-quality development project with significant upside potential and low relative execution risk located in a country where we have had extensive experience and success, and maintain a strategic and competitive operating advantage. This acquisition is an excellent fit for Kinross as it enables us to leverage our expertise as a world-class cold climate heap leach operator. With a large estimated mineral resource, Chulbatkan has the potential to be a significant low-cost, low-strip, high-return operation that will strengthen our longer-term production and cash-flow profile.”
“Our team helped the client analyze the tax aspects of the transaction in detail," commented Pepeliaev Group Senior Partner Rustem Ahmetshin, who led the firm's team on the deal, "bearing in mind the constantly changing rules of tax legislation and practice of applying it.” Ahmetshin was assisted by Pepeliaev Group Senior Associate Andrey Kirillov and Head of Tax Audit and Accounting Olga Baranova.
