High River increases Buryatzoloto holding

High River Gold Mines (HRG-T) has bought a further 10% shareholding in Buryatzoloto, the Russian company tha operates the Zun-Holba and Irokinda mines in the Buryat autonomous region in eastern Russia.

High River said the terms of the deal were cash, but were at a similar value to a share swap in May of last year with Japanese gold-investment fund Jipangu, which gave High River a 43.4% interest in Buryatzoloto. At High River’s current share price of 57 the terms imply a cash transaction of around $2.9 million.

Jipangu received 5.1 million shares of High River for its 10% direct holding in Buryatzoloto. Jipangu now owns 32.5% of High River.

High River, which plans to maintain a 51% interest in Buryatzoloto, is represented on the Russian company’s board of directors. Buryatzoloto’s chairman, Aleksandr Balabanov, is on the High River board and a second Buryatzoloto director will stand for election at High River’s next annual meeting.