VANCOUVER, B.C., Aug. 28, 2003 (PRIMEZONE) -- Crew Development Corporation ("Crew") (TSE:CRU) (OSE:CRU) (Frankfurt:KNC) (Other OTC:CRWVF): Crew Development Corporation (Crew) is pleased to announce that it has placed a NOK 120 million three-year convertible loan with three major international institutions based in London. The loan is denominated in NOK with a 9% coupon and conversion of principal at NOK 3.60 per Crew share. The right to convert is on the bondholders' hand. The maximum number of shares that may be issued upon conversion of the bonds is 33.3 million shares, resulting in a maximum dilution factor of 19%. Closing date for the bond issue is September 8th 2003, and an application for the listing of the bond including prospectus will be submitted to the OSE.
With an explicit focus on creating shareholder value, this funding will allow the company more flexibility in financing the development of key projects, but also to advance operations as well as Crew's exploration and resource expansion efforts in Greenland and Ghana. This private placement is fully in line with the previously stated corporate objective of establishing a broader international shareholder base, and to attract new institutional investors to the company.
Furthermore, the successful placement of this convertible bond is regarded by Crew both as a general endorsement of the corporate strategy, and as confirmation of the underlying value of the company's assets.
In addition to being supportive of the present corporate strategy, this transaction will give Crew greater flexibility and responsiveness in relation to the development of its projects. Crew believes that substantial shareholder value may be developed from its portfolio of assets, and that this strengthening of the company's financial position is complementary to Crew's strategy of growth and long-term value creation.
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 Investor Relations Manager Truls Birkeland at our UK Head Office, (TEL +44 1932 268 755) or the Oslo Office (TEL +47 2212 1650), or by email to IR@crew.no .For more information about Crew, additional contact information or to subscribe to future news releases, please visit our new website www.crewdev.com