High River Gold Mines Ltd HRIVF

RE: Severstal Raises $500M Thru Eurobonds

[discern1]

Severstal has a lot more cash problems than thinking about purchasing HRG.  They have billions in debt that they have to begin paying for an paying down.  One of the main reasons for the Nordgold float was to be able to pay down debt that Severstal owed in its other operations.
As Mordashov stated in the interview with Bloomberg, they may even consider selling all of their gold assets.  They are in the gold business to try and develop assets, but likely they are not diversifying as part of a long term strategy.  Instead, they are trying to use their exploration, mining and production expertise to purchase undervalued assets, turn them around and them make lots of money for them.  
Unfortunately for us, their time horizon for appreciating assets is longer than most Westerners.  
Finally, I am quite certain that if a Chinese sovereign wealth fund offered to buy all of the assets of Nord Gold at say 6 billion, then Severstal or Mordashov would be happy to sell - I would be too.