Key points
- The placees were a subsidiary of Anglo American PLC and a company wholly owned by Russian investor Alisher Usmanov.
- Each placee became an insider of the company by holding more than 10 per cent of the issued and outstanding common shares after the placement.
- Proceeds from the private placement will be used to finance the development of the company’s business.
- All securities are subject to a four-month hold period in Canada that expires on March 3, 2007.
Nautilus Minerals Inc. has closed the private placement of 22,833,334 common shares at a price of $3 (U.S.) ($3.37 (Canadian)) per common share, for gross proceeds of $68.5-million (U.S.), which was previously reported in Stockwatch on Oct. 30, 2006.
The placees were a subsidiary of Anglo American PLC and a company that is wholly owned by Alisher Usmanov, a prominent Russian investor in the Russian mining and metal industries.
Mr. Usmanov is the principal shareholder of the Metalloinvest Group, which owns and operates large iron ore and steel producers in Russia. The group is the biggest Russian iron ore producer and Russia’s fifth-largest steel producer and currently has consolidated revenues of more than $5-billion (U.S.). The group includes:
two of the biggest Russian iron ore producers, Lebedinsky and Mikhailovsky GOK, with total iron ore production in 2005 of 37.5 million tonnes of iron ore representing just under 40 per cent of Russia’s total production that year;steel producing companies Ural Steel and OEMK, two of Russia’s largest steel mills with total crude steel production of seven million tonnes. The group is also the managing shareholder in MMZ, a Moldavian EAF steel producer; andmanufacturing company Ormeto-Yumz, which is one of the key manufacturers of mining and metallurgy equipment in Russia.
- two of the biggest Russian iron ore producers, Lebedinsky and Mikhailovsky GOK, with total iron ore production in 2005 of 37.5 million tonnes of iron ore representing just under 40 per cent of Russia’s total production that year;
- steel producing companies Ural Steel and OEMK, two of Russia’s largest steel mills with total crude steel production of seven million tonnes. The group is also the managing shareholder in MMZ, a Moldavian EAF steel producer; and
- manufacturing company Ormeto-Yumz, which is one of the key manufacturers of mining and metallurgy equipment in Russia.
The two placees involved each became insiders of the company by virtue of holding in excess of 10 per cent of the company’s issued and outstanding common share capital upon completion of the private placement.
The proceeds of the private placement will be used to finance the development of the company’s business.
All securities are subject to a four-month hold period in Canada that expires on March 3, 2007.
