OREANDA-NEWS. November 20, 2008. ZAO Severstal Resources,  the mining division of OAO Severstal  (LSE: SVST; RTS CHMF), today announces that it has acquired approximately 282.3 million newly issued common shares of High River Gold Mines Ltd (TSX:HRG) (“High River”) for USD0.1594 (CDND 0.20) per share, representing a total consideration of USD 45.0 million (CDND 56.4 million).  Additionally, as a partial consideration for the purchase price Severstal Resources was issued approximately 40.7 million warrants exercisable for approximately 40.7 million common shares of High River at an exercise price of CDND 0.64 per common share.

Following the close of the transaction, expected later today, and including High River shares already owned by Severstal’s affiliates, Severstal Resources will control 50.1% of the High River’s share capital on a fully-diluted basis. 

High River is a gold mining company listed on Toronto Stock Exchange (Symbol: HRG) with a portfolio of producing mines, mines under development, and advanced exploration projects in Russia and Burkina Faso. The company’s annual attributable gold production from these assets is expected to exceed 300,000 ounces (approximately 9.33 metric tonnes) in the near future

Morgan Stanley & Company Limited and Torys LLP are acting as the financial and legal advisors to Severstal Resources on this transaction.