High River Gold Mines Ltd HRIVF

RE: RE: Severstal bidding for all of Crew

[cjsell]

If I am not mistaken Crew has 300+ million in debt, gold sales 150 million or 150,000 oz.  but has maybe 4 million oz of reserves and has a big land package.  Equipment at the mine sites is older and Crew wanted to upgrade/replace equipment in order to boost production....but no cash.  Survived by selling off (fire sale) assets around the world.  When the music stops there won't be enough chairs around. 

Unclear exactly how Severstal is financing their Crew adventure.  It was reported that their lenders put the breaks on any additional debt, and Severstal does not have the free cash to invest in rebuilding Crew and HRG at the same time.  Other play is to have the other major partner pay blackmail money for Severstal to get lost...

I wonder if Severstal is planning to have HRG "invest" in Crew.  There was news that Royal might wave their hold on HRG's equity in Detour etc.  This could free up almost 60 million, and HRG is almost debt free...I hope they don;t try that stunt. 

Canacord stopped selling and Goldman was buying in light volume, lets hope HRG gets moving.  Severstal must release FY2009 by the end of March, and the financials are going to be great.

CJ