Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
TORONTO, ONTARIO–(Marketwire – Nov. 28, 2012) – High River Gold Mines Ltd. (TSX:HRG) (“High River” or the “Company“) acknowledges that Nord Gold N.V. (“Nordgold“) has reported that it has taken-up 108,236,052 common shares (“Shares“) of the Company, representing approximately 51.6% of the Shares not already owned by Nordgold, under its take-over bid (the “Offer“) and extended the Offer until 12:01 am (Toronto time) on December 8, 2012.
Under the terms of the Offer, eligible High River shareholders who tender their Shares to the Offer can elect to receive either: (i) 0.285 Nordgold global depositary receipts for each Share tendered; or (ii) C$1.40 in cash for each Share tendered. Nordgold also stated in its press release dated November 27, 2012 that it will not be increasing the Offer consideration and has no intention of extending the Offer beyond December 8, 2012.
The board of directors of High River (with those directors who are nominees of Nordgold abstaining), upon the unanimous recommendation of its Special Committee, unanimously recommended that High River shareholders accept the Offer and tender their Shares to the Offer for the reasons set out in the Directors’ Circular dated October 30, 2012, which was mailed to shareholders on October 31, 2012. A copy of the Directors’ Circular is also available online at www.sedar.com.
About High River
High River is an unhedged gold company with interests in producing mines, development and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, the Prognoz silver project in Russia.
