High River Gold cancels Russian silver site sale

TORONTO (Reuters) - High River Gold said on Wednesday it is canceling its plan to sell its 50 percent interest in the Prognoz silver project in Russia, following opposition from shareholders.

Prognoz said in May it would sell its holding to TSX Venture Exchange-listed Roscan Minerals in exchange for a stake in the company.

"High River will reevaluate its alternative regarding Prognoz, including a spin-out, with the view of determining an approach that would receive wide support from its shareholders," the Toronto-based company said in a statement.

It said the agreement with Roscan had been terminated by mutual agreement.

High River describes Prognoz as one of the world's largest undeveloped silver projects, with an indicated resource of 71.5 million ounces and an inferred resource of 39.2 million ounces.

(Reporting by Cameron French; Editing by Peter Galloway)