MOSCOW, December 5 (RIA Novosti) - Russian billionaire Roman Abramovich intends to pay more than $400 million to buy a 40% stake in Britain's Highland Gold Mining Ltd., the gold mining company said on its website on Wednesday.

Highland Gold Mining Ltd., which was established in 2002 for the purpose of acquiring, consolidating and developing a portfolio of quality gold mining projects in Russia, said the deal would be carried out through Millhouse LLC, the company that manages Abramovich's assets.

Abramovich is also the governor of the Chukotka region and the owner of Britain's Chelsea football club.

"Millhouse LLC will subscribe in cash for 65,050,000 new ordinary shares in Highland Gold at a price of 151 pence per new ordinary share (the "First Subscription") and a further 65,050,000 new ordinary shares at the same price, following the passing of the requisite shareholder resolutions (the "Second Subscription")," the company said in a statement.

The proceeds from the transaction will form an essential part of Highland Gold's funding, allowing it to proceed with its development program, and will reduce the company's reliance on debt financing, the statement said.

The first subscription is expected to take place on December 11, following which Millhouse's stake in Highland Gold will rise to 25%. With the completion of the second subscription, which requires approval from Highland Gold shareholders, Abramovich's stake in the company will increase to 40%, the statement said.