LONDON, April 1, 2005 (PRIMEZONE) -- Crew Gold Corporation ("Crew") (TSX:CRU) (OSE:CRU) (Frankfurt:KNC) (Other OTC:CRUGF).
Crew Gold Corporation is pleased to announce that an agreement to sell all of its shares in Seqi Olivine A/S to Minelco AB has been signed on March 31, 2005. Minelco is a subsidiary of the Swedish industrial metals group LKAB. The purchase price consists of an up front cash payment of USD 10 million to be paid upon closing and a 17-year royalty agreement based on produced tonnage. For years 3 through to 14 of production, there is a guaranteed minimum royalty of USD 1 million per year. Completion of the agreement is subject to receipt of all necessary regulatory approvals as well as board approvals from all parties. The sale is scheduled to close no later than May 3, 2005.
Jan A. Vestrum, CEO of Crew Gold Corporation, comments: "We are very satisfied with this agreement as it demonstrates immediate value within our non-gold project portfolio, and our ability to capitalize on this. We believe the non-gold portfolio holds a number of other projects that can be realized with significant value in a short to mid-term time horizon. This strengthens our overall financial position and ability to grow our core business."
Jan A. Vestrum President & CEO
This news release contains certain "Forward-Looking Statements." All statements, other than statements of historical fact, included in this release, and/or statements made by company officers or directors at any given time, as well as Crew's future plans are such forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Crew does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
For more information please contact our UK Head Office (TEL +44 1932 268755) or by email to enquiries@crewgold.com For more information about Crew, additional contact information or to subscribe to future news releases, please visit our new website www.crewgold.com