OAO Severstal
LSE : SVST

OAO Severstal

February 14, 2011 09:11 ET

Severstal Terminates Agreement to Acquire Sacre-Couer Minerals, Ltd.

AMSTERDAM, THE NETHERLANDS--(Marketwire - Feb. 14, 2011) - Nord Gold N.V. ("Nord Gold") (formerly Severstal Gold N.V. ("Severstal Gold")), a subsidiary of OAO Severstal ("Severstal") (LSE:SVST)(RT:CHMF), announced today that it has terminated its agreement with Sacre-Coeur Minerals, Ltd. ("SCM") to acquire 100% of the issued and outstanding common shares (the "Common Shares") of SCM that it does not already own.

As disclosed on September 23, 2010, Severstal Gold purchased 3,900,000 common shares ("Common Shares") of SCM at an average price of CAD$1.5444 per Common Share for a total cost of $6,023,160.00 on September 22, 2010. Following this transaction, Nord Gold and its subsidiaries had ownership and control over 7,751,500 Common Shares, representing approximately 19.67% of the issued and outstanding Common Shares as at September 24, 2010. The additional acquisition of Common Shares on September 22, 2010 was effected to increase Severstal's beneficial ownership position in SCM. Severstal Gold entered into a binding agreement with SCM to acquire 100% of the issued and outstanding Common Shares that it did not already own, at a price of CAD$1.60 per Common Share, which agreement was terminated by Nord Gold in accordance with its terms as of February 11, 2011.

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. Incorporated in 1993, the company focuses on high value added and unique niche products. Its main steel-making assets are in Russia, the United States and Europe. Severstal's mining assets in Russia and the USA provide the company with strong self-sufficiency in coking coal and iron ore in Russia, and good self-sufficiency in coking coal in the USA. In 2009, Severstal produced 16.7 million tonnes of steel.

Nord Gold (formerly Severstal Gold) includes all of Severstal's gold mining assets and is an established international, pure-gold producer focused on emerging markets and currently has 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 Nord 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
   
  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 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