Highland Gold signed two agreements for state support of Kekura

In the first agreement, the Far East Development Fund (FEDF) committed to providing Highland Gold with a 2 billion roubles ($30.7 million) preferential loan, with a term of six years and an annual interest rate of 5%. FEDF will also consider future additional financing for Kekura, which they estimate would add at least 55.6 billion roubles ($855 million) to regional GDP and remit approximately 3 billion roubles ($46 million) in taxes by 2027. The project will also create about 800 new jobs.

The second agreement, signed by the government of Chukotka, Highland Gold, and Regional Mining Company (RGK), is a memorandum of understanding on improving electricity infrastructure in the region. The local government confirmed its intention to build high-capacity power lines from the town of Bilibino, located 120 km north of Kekura, to substations that would be built by Highland Gold and RGK at their respective mine sites.

«The interest Kekura has received from both the Chukotka government and FEDF is testament to the project’s importance, not just for Highland Gold but for Chukotka and the Russian Far East region. The Company believes that these two agreements, when implemented, will help to further improve the economics of the project. We welcome the involvement of FEDF in financing Kekura and count on continued cooperation with the Fund in the future,» said Highland Gold CEO Denis Alexandrov.