Nord Gold Completes Separation from Severstal and Retains Its Stake in High River Gold Mines
AMSTERDAM, THE NETHERLANDS, Mar 14, 2012 (MARKETWIRE via COMTEX) — Nord Gold N.V. ("Nord Gold") , a former subsidiary of OAO Severstal ("Severstal") UK:SVST -0.34% (rt:CHMF), announces that the separation of Nord Gold from Severstal via a Private Exchange Offers transaction (the "Exchange Transaction") is complete. Following the Exchange Transaction, Severstal no longer has beneficial ownership or control over Nord Gold and consequently no longer has beneficial ownership or control over the 630,627,472 common shares ("Common Shares") of High River Gold Mines Ltd. ("High River"), representing approximately 75.06% of the issued and outstanding Common Shares as at the date hereof, that are held by Nord Gold.
Following the Exchange Transaction, Nord Gold has direct, as well as beneficial, ownership and control over 630,627,472 Common Shares, representing approximately 75.06% of the issued and outstanding Common Shares as at the date hereof. The Exchange Transaction was conducted in accordance with the laws of the Netherlands and the Russian Federation and the rules of the Moscow Stock Exchange and the London Stock Exchange.
The Exchange Transaction was effected to separate two businesses of Severstal and to lead Nord Gold to becoming an independent public company via a listing of Global Depositary Receipts on the London Stock Exchange. Nord Gold 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.
This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR ( www.sedar.com ) containing additional information with respect to the foregoing matters. A copy of this report may be obtained by contacting Alexey Shchedrin, Head of Financial Communications & Investor Relations, Nord Gold at +31 20 406 4480 , [email protected]
About Nord Gold
Nord Gold was established in 2007 as the gold producing division of Severstal and has since developed into a leading, internationally diversified gold producer, with a strategic focus on emerging markets.
Nord Gold has achieved rapid growth both organically and through acquisitions, increasing production from approximately 21 koz in 2007 to 754 koz in 2011, a CAGR of 145%. In 2011, Nord Gold produced half of its output outside Russia, highlighting the Company's increasingly global footprint.
Nord Gold now boasts a diverse portfolio of high quality producing assets. This portfolio consists of eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licences. The Nord Gold's operations are located in the Russian Federation, Kazakhstan, Guinea and Burkina Faso.
Nord Gold expects to maintain its strong growth profile, with a production target of over 1 moz from its operating mines and development projects by 2013.
The address of Nord Gold is:
Nord Gold N.V. Strawinskylaan 3105 Atrium 1077 ZX Amsterdam The Netherlands
Forward Looking Statements
This news release contains statements that may be forward-looking statements regarding future events or the future financial performance of Nord Gold. Forward looking statements are identified by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms, or other similar expressions. Nord Gold wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Nord Gold does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could cause the actual results to differ materially from those contained in forward-looking statements of Nord Gold may include, among others, general economic conditions in the markets in which Nord Gold operates, the competitive environment in, and risks associated with operating in, such markets, market change in the steel and mining industries, as well as many other risks affecting Nord Gold and its operations.