/INTERFAX, London, title of IRBIS, October 5, 06/ - Highland Gold Mining Limited attained principal agreement about sale to Kazzinc 48.3% of shares of Novoshirokinsk mine PC (Chita region) for $36 m., is reported in the message of HGM.

Signature of juridical documents is expected next week, the agreement will take effect on the assumption of approval of Federal antimonopoly service of RF. Closing of the deal is expected by the end of this year.

Currently HGM owns 96.6% of shares of gold and polymetallic field. Investments, necessary for putting it into operation, are estimated approximately at $40 m. for 2006-2008 years. Kazzinc invests half of required capital.

Kazakhstan Kazzinc is a big integrated producer of zinc, copper, gold, silver and lead. The company works mainly on fields of Eastern Kazakhstan.

HGM owns rights for development of gold and ore fields Mnogovershinnoye in Khabarovsk territory, Darasun, Talatuy, Teremki in Chita region, Mayskoye in Chukot Autonomous Area abd gold and polymetallic fields Novoshirokinskoye and Taseyevskoye in Chita region.

Primary shareholders of are structures, presenting interests of Barrick Gold (20% of shares) and British family Fleming.

In September on mine Tcentralnaya of Darasun pit, which belongs to HGM, a fire occurred, as a result of which 25 people perished. After that Russian nature supervision announced about conducting complex control of HGM enterprises, including Novoshirokinsk mine.

[2006-10-05]