* High River says outlook remains uncertain
* Forms committee to oversee discussion
May 22 (Reuters) - Canada's High River Gold Mines Ltd said Russian steelmaker Severstal has proposed to make a cash offer of 18 Canadian cents a share to its minority shareholders.
High River said the outlook for the company remains uncertain in the absence of further financial support, and there can be no guarantee that such an offer will ultimately be made at this stage.
High River, which has operations in Russia and West Africa, said it has formed a special committee of independent directors to oversee discussions with Severstal and evaluate any proposal that may be made.
On Tuesday, the company said its total scheduled principal and interest debt repayments due in May and June was about $15.5 million and it has about $22 million additional repayments due in the second half of 2009.
High River had said it was looking at ways to obtain additional financing needed to meet its financial obligations, but there was no assurance that it could do so.
It also mentioned that it remained in breach of certain financial covenants under its loan agreements with Royal Gold Inc and Severstal.
Shares of the Toronto, Ontario-based company closed at 23 Canadian cents Thursday on the Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan) Keywords: HIGHRIVER/ (ashutosh.joshi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ashutosh.joshi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Forms committee to oversee discussion
May 22 (Reuters) - Canada's High River Gold Mines Ltd said Russian steelmaker Severstal has proposed to make a cash offer of 18 Canadian cents a share to its minority shareholders.
High River said the outlook for the company remains uncertain in the absence of further financial support, and there can be no guarantee that such an offer will ultimately be made at this stage.
High River, which has operations in Russia and West Africa, said it has formed a special committee of independent directors to oversee discussions with Severstal and evaluate any proposal that may be made.
On Tuesday, the company said its total scheduled principal and interest debt repayments due in May and June was about $15.5 million and it has about $22 million additional repayments due in the second half of 2009.
High River had said it was looking at ways to obtain additional financing needed to meet its financial obligations, but there was no assurance that it could do so.
It also mentioned that it remained in breach of certain financial covenants under its loan agreements with Royal Gold Inc and Severstal.
Shares of the Toronto, Ontario-based company closed at 23 Canadian cents Thursday on the Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan) Keywords: HIGHRIVER/ (ashutosh.joshi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ashutosh.joshi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.