MOSCOW, August 1. /TASS/. Kinross Gold will acquire 100% of the Chulbatkan gold project in Russia’s Far Eastern Khabarovsk Region from a private company N-Mining Limited, Canada’s miner reported on Thursday.

The deal is totally worth $283 mln, of which $113 mln will be paid in cash and another $170 mln in Kinross shares, the report said. Moreover, N-Mining will receive a 1.5% net smelter return (NSR) payment on future production from the license area. The closing of the transaction is expected in early 2020.

Initial capital expenditures are planned at $500 mln.

Indicated mineral resources of the project are estimated at 3.9 mln ounces of gold with average content of 1.4 g/t, while inferred resources may stand at 80,000 ounces with average content of 1 g/t. License for the field’s exploration and mining is valid until the end of 2037. The life of the project is estimated at six years, during which time the company plans to produce 1.8 mln ounces of gold.

Kinross Gold has been working in Russia since 1995, with 20% of its production based in Russia. The company operates on gold fields in Russia’s Chukotka Autonomous Okrug, including the mines of Kupol, Dvoinoye and Moroshka, which was launched in 2018.