27 Jul 2010 12:45

Severstal boosts stake in Crew Gold to controlling 50.17%

MOSCOW. July 27 (Interfax) - OJSC Severstal boosted its stake in gold producer Crew Gold from 40.38% to a controlling stake of 50.17%, Crew Gold said in a statement filed with the Oslo Stock Exchange.

The statement said that Severstal Gold N.V., Severstal's Dutch subsidiary, purchased Crew Gold's additional issue of 209,389,500 shares. The company now owns 72,832,160 shares in the gold mining company, which accounts for a 50.17% stake.

The additional issue was purchase at 2.09 Norwegian krona per share ($0.338325).

"The additional packet was acquired from the other shareholders in Crew," a spokesperson for Severstal Resource told Interfax.

Severstal earlier carried out its plans for placing representatives on Crew Gold's board of directors. In accordance with a shareholder agreement reached on June, the board was expanded to nine positions, four of which represent the Endeavour fund, which owns 43.21% of the shares). Severstal has three representatives while other shareholders have two representatives.

Crew mines gold at the Lefa deposit in Guinea, producing 179,000 troy ounces last year. Severstal has assets in Russia, North America, Europe, Ukraine, and Kazakhstan. The company's main beneficiary is its general director, Alexei Mordashov, who owns more than 82% of company stock. The other 18% is in free float.