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EBRD sells equity stake in Canadian group mining gold in Russia
The EBRD has sold its equity stake in High River Gold Mines Ltd., a Canadian
mining company which is the controlling shareholder of OAO Buryatzoloto, a
gold producer in the Buryatia region of Russia.
The EBRD’s 11.76 million shares in High River Gold accounted for approximately
4.2 per cent of the company’s share capital and were sold at a small discount
to High River Gold’s closing share price of C$ 2.69 on 23 April 2007.
The business relationship between the EBRD and the Canadian gold producer’s
Russian operations dates back to December 1996, when the Bank provided a loan
and acquired an equity stake in Buryatzoloto. The loan was fully repaid and
the EBRD’s equity stake was subsequently converted into High River Gold shares
in May 2005.
The shares, which are listed on the Toronto stock exchange, were placed
through CIBC World Markets.
Kevin Bortz, EBRD Director for the natural resources sector, said that the
Bank had achieved a number of important objectives during its involvement in
Buryatzoloto. The EBRD supported the development of a newly privatised gold
mining company which, ten years on, is Russia’s sixth-largest gold producer.
The Bank facilitated the transfer of technology, contributed to the
preservation of the local environment and helped the company achieve energy
cost savings.
David Mosher, CEO of High River Gold, said High River Gold appreciates the
support it has received from the EBRD over the last 10 years. The EBRD,
through several projects, helped Buryatzoloto, a unique Russian mine
development and operating team, develop into a strong regional economic
provider operating in an environmentally responsible manner. Although our
official involvement with the EBRD ended with debt repayment, we look forward
to working with the Bank again in the future as we expand our activities in
Russia and continue to add value for our shareholders, our employees and the
various regions of our operations.
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