Omolon repays debt financing

The Kubaka mine in far eastern Russia has enabled owner Omolon Gold Mining to repay US$50 million of the US$130 million in debt financing it received from the European Bank for Reconstruction & Development (EBRD) and the Overseas Private Investment Corp. (OPIC).

Since startup in June 1997, the mine has produced 1.2 million oz. gold-equivalent.

Ownership of Omolon is shared by: Kinross Gold (K-T), with 53%; Magadan-based Geometall Plus, with 25% (Geometall is 86%-owned by Moscow-based Western Pinnacle Mining [wpn-v]); the Russian Credit Bank, with 7%; Magadan Silver & Gold, with 7%; and a local organization of shareholders, with 7%.

The remaining US$80 million in project loans to Omolon has become non-recourse to Kinross.

In related news, Kinross and Pricewaterhouse Coopers, the interim receiver for Royal Oak Mines, have extended to Dec. 20 the closing date for Kinross’s US$5-million purchase of Royal Oak’s assets in Timmins, Ont.

The deal’s closing remains subject to Kinross’s obtaining government approvals by mid-December.