Crew Gold buys GOVERNMENT's share of Guinea mine
[ Has this ever been done before? Cash and shares. Now the Guinea government is a Crew shareholder, but apparently has no other future beneficial interest, officially, in the mine. Will officials in other countries be inspired to demand handovers of cash now? Is this transaction wise for Crew? Wise for the Guinea public? ]
JULY 3, 2006 - 10:45 ET
Crew Signs Agreement With The Government of Guinea to Acquire The Remaining 15% of SMD
LONDON, UNITED KINGDOM--(CCNMatthews - July 3, 2006) - Crew Gold Corporation ("Crew" or the "Company")(TSX:CRU)(OSE:CRU)(FWB:KNC)(OTCBB:CRUGF):
Crew is pleased to announce that an agreement has been signed between Crew and the Government Of Guinea whereby Crew will acquire the Government of Guinea's 15% stake in SMD for a total consideration of USD 30 million, consisting of 15 million USD cash and 15 million USD worth of Crew Gold shares. Crew welcomes The Republic of Guinea as a major share holder of Crew.
President and CEO of Crew Gold Corp Jan Vestrum states:
"This transaction underpins, and further strengthens; SMD's/Crew's more than 10 year presence in Guinea and describes the excellent relationship between the local operation and the government. We believe the Lefa project, estimated to commission its new CIP plant towards the end of 2006, represent major value for Crew. Possibly as important longer term the remaining part of the concession seem to carry substantial further upside. Crew will continue to allocate considerable resources to its operation in Guinea."
The Minister of State, Minister of Economy and Finance, Hon Mr. Madikaba Camara and the Minister of Mines and Geology, Hon Dr. Cusmane Sylla states:
"We are very pleased to see Crew continue investing in Guinea and believe this transaction confirms Guinea as an attractive country for investments in the mining industry. Through its investment in Crew Gold Corp the Republic of Guinea will, as a major share holder in Crew, continue to participate in the development of the country's natural resources industry."
Jan A Vestrum
President & CEO
Safe Harbour Statement [ omitted ]
