Mr. Sergey Loktionov reports
SEVERSTAL ACQUIRES 100% OF CREW GOLD CORPORATION
Nord Gold, a subsidiary of OAO Severstal, has acquired through a subsidiary all common shares of Crew Gold Corp. that it did not already own at a price of $4.65 (U.S.) ($4.62) per common share pursuant to a plan of arrangement under the laws of the Yukon Territory. A total of 7,077,313 common shares were acquired, which represent ownership and control of approximately 6.62 per cent of the issued and outstanding common shares as at the date hereof.
Following this transaction Severstal will have ownership and control over 106,922,322 common shares, representing 100 per cent of the issued and outstanding common shares as at the date hereof. The acquisition occurred under a statutory plan of arrangement which took effect as of Jan. 7, 2011.
The additional acquisition of common shares was effected to complete Severstal's acquisition of Crew Gold. Severstal controlled Crew Gold prior to this purchase and will continue to control Crew Gold.
Severstal began the acquisition of Crew Gold shares at the beginning of 2010, after Crew Gold had undertaken a restructuring in response to financial difficulties. In June, 2010, Severstal became a control shareholder and, after acquiring a 43.21-per-cent stake from Endeavour Financial Corporation, Severstal became a 93.38-per-cent shareholder. Today Severstal announces its full control over Crew Gold.
Nikolai Zelenski, chief executive officer of Nord Gold, commented: "We are very pleased to fully integrate Crew Gold into our gold segment having assumed full control of its shares. This will enable us to continue and escalate ongoing investment into this asset, with a focus on improvements to its operational and financial efficiency. Crew Gold is a very significant part of our growing gold mining business and one which I believe will deliver real value to shareholders as well as make a contribution to the development of the local territory and Guinea as a whole."
This news release is issued pursuant to National Instrument 62-103 -- Early Warning System and Related Takeover Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR containing additional information with respect to the foregoing matters. A copy of this report may be obtained by contacting Sergey Loktionov, public relations, OAO Severstal, at 7-495-9810910, extension 6446.
About Severstal
OAO Severstal is one of the world's leading integrated steel and mining companies with listings in Russia and on the London Stock Exchange. Incorporated in 1993, the company focuses on high-value-added and unique niche products. Its main steelmaking assets are in Russia, the United States and Europe. Severstal's mining assets in Russia and the USA provide the company with strong self-sufficiency in coking coal and iron ore in Russia, and good self-sufficiency in coking coal in the USA. In 2009, Severstal produced 16.7 million tonnes of steel.
Nord Gold (ex-Severstal Gold) includes all Severstal's gold mining assets and is an established international, pure-gold producer focused on emerging markets with currently eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licences located across West Africa in Guinea and Burkina Faso, Kazakhstan and the Russian Federation.
Crew Gold operates the LEFA gold mine in Guinea with 2009 gold production of 177,623 ounces and gold production of 138,081 ounces in the three quarters ended Sept. 30, 2010.
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