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Friday, 21st November 2008 (1600 views)

ZAO Severstal Resources has announced that it has acquired an additional stake in High River Gold Mines.

The firm has acquired a total consideration of $45 million (£30 million) by purchasing 282.3 million newly issued common shares for $0.1594.

Following the latest share purchase, Severstal Resources now holds a controlling stake in High River Gold and the company has also been issued approximately 40.7 million warrants exercisable for approximately 40.7 million common shares of High River as a partial consideration for the purchase price.

The transaction means that Severstal Resources will control 50.1 per cent of High River's share capital on a fully-diluted basis.

ZAO Severstal Resources is the mining division of Moscow-based OAO Severstal and the company acquired Celtic Resources Holdings in 2007, marking its entry into the gold mining sector.

Listed on the Toronto Stock Exchange, High River Gold has a portfolio of producing mines, mines under development and advanced exploration projects in Russia and Burkina Faso with annual attributable gold production expected to exceed 300,000 ounces.

 

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