OREANDA-NEWS. April 24, 2007. 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, reported the press-centre of  EBRD.

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.