Crew Gold provides clarification of the process culminating in the
Restructuring announcement August
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Press Release - August 27, 2009 Crew Gold provides clarification of the process culminating in the Restructuring announcement August 17, 2009LONDON, United Kingdom: Reference is made to the announcement of CrewGold Corporation ("Crew" or "the Company") (TSX: CRU) (OSE: CRU) ofAugust 17, 2009 regarding the initiatives taken by the Company tostrengthen its balance sheet, including the proposed conversion intocommon shares of approximately US$148 million principal amount ofbonds issued by Crew and a Rights Offering with proceeds ranging fromNOK 65 million to NOK 90 million.Due to the potential adverse consequences, should the Restructuringproposal not be approved, Crew has decided to make a public statementwith the intent of clarifying certain issues related to the contentof the Restructuring proposal and implications thereof.Crew has incurred approximately US$330 million of bond debt over thepast 5 years to partially fund acquisitions and capital expansion.The balance of funding has come from shareholders, operations andasset sales. After advice from Arctic Securities, the financialadvisor, Crew decided to explore different alternatives to allow itto better execute its business plan. The objective has been to find afinancially viable solution to preserve and protect stakeholdervalue. The proposed Restructuring is a result of negotiations betweenthe largest bondholders and a committee of the Board of Directors.The bondholders referred to represent negative control of the largestbonds and were therefore a key determinant in seeking to find amutually agreed Restructuring proposal. The trustee, NorskTillitsmann, has also taken an active part in these negotiations andhas provided frequent inputs from the initiation of the process,including but not limited to, reviewing and commenting on thetransaction structure and proposed solutions. The Company istherefore of the opinion that the proposal represents a balanced andunited solution from both a shareholder and bondholder perspective.Crew is in a critical stage of the operational ramp-up (reference ismade to Crew's "Quarterly report ending June 30, 2009" for furtherdetails). In particular, the Company emphasizes the importance of theliquidity disclosures and going concern note in "Management'sDiscussion and Analysis of Financial Conditions and Results ofOperations for the quarter and six months ended June 30, 2009"stating:"The Company believes that the completion of the rectificationprogram and the achievement of the anticipated 2009 productiontargets at LEFA will result in the operations generating sufficientcash flow to fund its working capital requirements and repay itsobligations as they fall due during 2009, however, this cannot beassured as the cash flows are dependent on significant factorsoutside the control of management such as changes in the gold price,foreign exchange rates, political uncertainty and the increasingcosts of inputs. Further, the Company will be required to renegotiateor refinance debt facilities coming due in 2010. There can be noassurance that the negotiations will be successful or that theCompany will be able to raise the necessary financing to repay thedebt as it comes due."In order to address these challenges, a conversion of a portion ofthe Bonds into equity, in combination with securing additionalsources of funds, is currently being contemplated under the proposal.Based on feedback from the financial advisor to date, it is evidentthat raising new equity capital on a standalone basis would beconditional upon a substantial restructuring of the Bonds. Theliquidity and stability of the Company following the injection ofproceeds from the proposed Rights Issue, as well as the Bondholders'influence on the Company through the new representatives on the Boardof Directors, should be seen as positive factors to the Bondholders.In the opinion of the Company, the Restructuring proposal is expectedto be a viable long term financial solution.The Restructuring proposal is a result of negotiations with the majorstakeholders to find a viable financial long term solution for allcomponents of the capital structure. Crew therefore stronglyrecommends that Bondholders who are uncertain about the upcomingvoting at the Bondholder meeting on 1 September 2009 and potentialconsequences thereof review the "Summons to Bondholders' Meetings",the Arranger's Assessment thereof and contact Arctic Securities ASA -Tom Hestnes or Kim Galtung Døsvig at + 47 21 01 31 00 for furtherinformation or contact Bill LeClair at the Company at + 44 (0) 1932268 526.William LeClairInterim CEOSafe Harbour StatementCertain statements contained herein that are not statements ofhistorical fact may constitute forward-looking statements and aremade pursuant to applicable and relevant national legislation(including the Safe-Harbour provisions of the United States PrivateSecurities Litigation Reform Act of 1995) in countries where Crew isconducting business and/or investor relations. Forward-lookingstatements include, without limitation, those with respect to (1) thecompletion of the Restructuring, (2) the process, terms and timing ofthe Restructuring, (3) the intended use of the proceeds of the RightsOffering, (4) the expected actions of third parties named in thispress release, (5) the expected impact of the Restructuring on Crew'scapital structure and (6) the expected benefits of the Restructuring.The words "expect", "anticipate", "will", "believe" and "may", andother similar expressions, are often used to identify forward-lookingstatements.Forward-looking statements involve known and unknown risks,uncertainties and other factors that could cause actual events orresults to be materially different from the events or resultsexpressed or implied by such forward-looking statements. Inevaluating these statements, prospective purchasers shouldspecifically consider various factors that may cause actual events orresults to be materially different from the events or resultsexpressed or implied by such forward-looking statements. Risk factorsthat could impact the Restructuring or the expected benefits of theRestructuring include, without limitation, (1) the actual results ofcurrent exploration activities, (2) conclusions of economicevaluations, (3) changes in project parameters as plans continue tobe refined, (4) possible variations in grade and ore densities orrecovery rates, (5) failure of plant, equipment or processes tooperate as anticipated, (6) accidents, labour disputes and otherrisks of the mining industry, (7) delays in obtaining governmentapprovals or financing or in completion of development orconstruction activities and (8) risks and uncertainties existing inworld capital markets generally. Although Crew has attempted toidentify important factors that could cause actual events or resultsto differ from those described in forward-looking statementscontained herein, there can be no assurance that the forward-lookingstatements will prove to be accurate as actual events or resultscould differ materially from those anticipated in such statements.The material factors and assumptions used to develop forward-lookingstatements include, without limitation, (1) there being nosignificant disruptions affecting operations, whether due to labourdisruptions, supply disruptions, damage to equipment or otherwise,(2) continued development, operation and production at LEFA and Macoconsistent with our current expectations, (3) foreign exchange ratesamong the currencies that Crew does business in being approximatelyconsistent with current levels, (4) certain price assumptions forgold, (5) prices for electricity, fuel oil and other key suppliesremaining consistent with current levels, (6) production forecastsmeeting expectations, (7) the accuracy of our current mineral reserveand mineral resource estimates and (8) materials and labour costsincreasing on a basis consistent with our expectations.Except as may be required by applicable law or stock exchangeregulation, the Company undertakes no obligation to update publiclyor release any revisions to these forward-looking statements toreflect events or circumstances after the date of this document or toreflect the occurrence of unanticipated events. Accordingly, readersshould not place undue reliance on forward-looking statements.http://hugin.info/90/R/1337729/318891.pdf --- End of Message ---Crew Gold CorporationAbbey House, Wellington Way, Weybridge Surrey United KingdomWKN: 226534105 ; ISIN: CA2265344028; ;
Datum: 27.08.2009 - 17:26 Uhr
Sprache: Deutsch
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