High River Gold Mines Ltd HRIVF

RE: RE: more buying by Severstal!!!

[jmr9757]

they're not going to get to the 90% mark. there are more than 10% minority shareholders who won't sell anywhere near these levels.

what Severstal is doing is building what is called a toe-hold. or in this case, increasing their already significant 72% toe-hold. the 2 transactions from the press releases this week have been with 2 institutional shareholders, outside of Canada (as mentioned). Severstal is likely working with an investment bank to locate these shares and secure them as cheaply and quickly as possible. They are avoiding purchasing in Canada because it could be seen as unfair when they finally launch their bid.

we'll see a bid for the rest of the shares they don't own as soon as they can't locate / negotiate non-Canadian holders to sell them meaningful blocks. if fair value is conservatively ~3.00 per share, I'll assume that will be the value of HRG when they float Nord Gold. As such, i'll accept ~$2.50 per share. Gotta give these russians something for all their "hard" work!