OAO Severstal

OAO Severstal

September 27, 2010 09:24 ET

Severstal Completes Acquisition of Stake in Crew Gold Corporation

AMSTERDAM, THE NETHERLANDS--(Marketwire - Sept. 27, 2010) - Severstal Gold N.V. ("Severstal Gold"), a subsidiary of OAO Severstal ("Severstal") (LSE:SVST)(RT:CHMF), announced today that it has closed the second tranche of its purchase of Endeavour Financial Corporation's entire stake in Crew Gold Corporation ("Crew Gold") of 46,203,403 common shares ("Common Shares") at a price of US$4.65 (CAD$4.78) per share. Severstal completed the purchase of 43,453,403 Common Shares on September 14, 2010, which acquisition and agreement to purchase 46,203,403 Common Shares was publicly announced by Severstal on September 14, 2010. The acquisition of the balance of 2,750,000 Common Shares was completed on September 23, 2010. Collectively, the securities represent ownership and control of approximately 43.21% of the issued and outstanding Common Shares as at the date hereof.

Severstal now has ownership and control over 99,845,011 Common Shares, representing approximately 93.38% of the issued and outstanding Common Shares as at the date hereof. The purchases were private, over the counter transactions occurring outside of Canada from a non-resident of Canada.

The additional acquisition of Common Shares was effected to increase Severstal's ownership position. Severstal controlled Crew Gold prior to this purchase and will continue to control Crew Gold.

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 Sergey Loktionov, Public Relations, OAO Severstal at +7 495 9810910 ext. 6446.

About Severstal

OAO Severstal is one of the world's leading integrated steel and mining companies with listings in Russia and on the London Stock Exchange. Its main assets are in Russia, Ukraine, Kazakhstan, Italy, France, the USA and Africa. The company focuses on high value added and unique niche products. In 2009, Severstal produced 16.7 million tonnes of steel.

Severstal Gold is an established international, pure-gold producer focused on emerging markets with currently eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licenses located across West Africa in Guinea and Burkina Faso, Kazakhstan and the Russian Federation.

The addresses of Severstal and Severstal Gold are:
OAO Severstal
2/3 Klara Tsetkin street, RU-127299
Moscow, Russia
Phone: +7 (495) 926 77 66
Fax: +7 (495) 926 77 61
Severstal 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 OAO Severstal. 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. OAO Severstal wishes to caution you that these statements are only predictions and that actual events or results may differ materially. OAO Severstal 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 OAO Severstal may include, among others, general economic conditions in the markets in which OAO Severstal 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 OAO Severstal and its operations.

Contact Information

  • OAO Severstal
    Sergey Loktionov
    Public Relations
    +7 495 9810910 ext. 6446