SEVERSTAL INCREASES STAKE IN HIGH RIVER GOLD MINES
Nord Gold NV, a subsidiary of OAO Severstal, has acquired 8.2 million common shares of High River Gold Mines Ltd. at a price of $1.29 per share on Aug. 22, 2011. The securities acquired pursuant to the transaction represent ownership and control of approximately 0.98 per cent of the issued and outstanding common shares as at the date hereof.
Following the transaction, Severstal will have beneficial ownership and control over 618,562,172 common shares, representing approximately 73.62 per cent of the issued and outstanding common shares as at the date hereof. The additional acquisition of common shares occurred in an over-the-counter transaction outside of Canada from a non-Canadian seller.
The additional acquisition of common shares was effected to increase Severstal's ownership position. Severstal controlled High River prior to the transaction and will continue to control High River. Severstal may in the future increase or decrease its ownership of securities of High River from time to time depending on such factors as the business and prospects of High River and future market conditions