Companies: HGM   

Valery Oif, a director of Roman Abramovich’s Millhouse investment vehicle, is replacing Henry Horne as chief executive of Highland Gold Mining.

Millhouse paid nearly £100 million in January at 151p to take its stake in Russia-focused Highland, a dire AIM performer, to more than 40 per cent.

Since then shares in Highland, which hopes to produce around 160,000 oz of gold this year from its Mnogovershinnoye project and has several other medium to near term projects in hand, had fallen to 27.25p – against 2002’s 190p float price and a 2006 peak of 332p.

Oif, 42, a graduate of the I M Gubkin Moscow Oil & Gas Institute, is a former vice-president of the Abramovich-linked Sibneft oil company and until recently Senator for the Omsk region in Russia’s Federation Council.

When it agreed to buy its big Highland stake, Millhouse was given the right to appoint a chief executive officer, a right it is now exercising.

Highland shares have bounced up 16.75p to 44p on the news, valuing the company at £143 million. The company may now be better placed to play by Russia’s opaque rules.

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Highland Gold Mining	AIM	£156.91m	48.25p	3.25p
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Other company articles:
Exploration Insights by Robert Tyerman			06/10/2008
Abramovich man takes Highland helm			17/09/2008
Pre-IPO treasure troves			02/06/2004
Robert Tyerman's exploration insights			02/06/2004
Highland Gold Mining			24/09/2003