FP says High River has had as positive transformation Ticker Symbol: C:HRG
FP says High River has had as positive transformation
High River Gold Mines Ltd (C:HRG)
Shares Issued 840,218,962
Last Close 7/24/2012 $1.41
Wednesday July 25 2012 - In the News
The Financial Post reports in its Wednesday, July 25, edition that plenty of shareholders grumbled when Russian metals giant OAO Severstal made its move on Canadian miner High River Gold Mines in 2008. The Post's Peter Koven writes that High River was on the brink of financial collapse and needed help, but investors did not want the company to be stolen from them at a rock-bottom price. Severstal got majority control of High River, but its outright takeover bid for the company failed. There was skepticism about whether the Russian firm would operate High River with the best interests of minority shareholders in mind. Fast forward to 2012, and the parent company is once again trying to buy 100 per cent of High River. But almost everything else has changed this time. The parent firm is now Nordgold NV, which was recently spun out from Severstal to pursue an aggressive growth strategy on its own. Any concerns about how a Russian-controlled High River would operate have been put to rest, as the company has undergone a turnaround under the stewardship of both Severstal and Nordgold. The stock closed unchanged Tuesday at $1.41. The stock has a 52-week range of 91 cents to $1.54.
© 2012 Canjex Publishing Ltd.
FP says Nordgold has created good value in High River
Ticker Symbol: C:HRG
FP says Nordgold has created good value in High River
High River Gold Mines Ltd (C:HRG)
Shares Issued 840,218,962
Last Close 7/24/2012 $1.41
Wednesday July 25 2012 - In the News
The Financial Post reports in its Wednesday edition that High River Gold's parent company is Nordgold NV, which is interested buying all of the company. The Post's Peter Koven writes that Norgold boss Nikolai Zelenski says: "We like the assets of High River Gold and we've continued to increase our share ownership of the company. And we felt that making an offer for the minority stake would make sense strategically. We have become a public company, so we have shares which we can use as currency for the transaction. As well, in April, we had a mineral resource report which described the reserve base for all our assets. So we felt that was another very important piece of information that enabled investors to objectively evaluate each asset individually and collectively." He says about 7 per cent of the outstanding shareholders are in favour of the bid. He says, "We're only able to approach the largest shareholders because the shareholder base is very dispersed. Among the ones who we approached, we received an overwhelming support." He says: "When we acquired control in 2008, the share price of the company was about 10 cents. The offer we're making is $1.40. ... That's one indication of value creation from our side."
© 2012 Canjex Publishing Ltd.