LONDON, Aug. 31, 2006 (PRIMEZONE) -- Crew Gold Corporation ("Crew" or the "Company") (TSX:CRU) (Oslo:CRU) (Frankfurt:KNC) (Other OTC:CRUGF).
Crew is pleased to report that it has signed an agreement to dispose of its 20% interest in Barberton Mines Proprietary Limited ("Barberton").
Crew acquired its interest in Barberton in June 2003 for ZAR 30 million. Since acquisition, the carrying value of this investment has increased to approximately ZAR 50 million after accounting for Crew's attributable share of Barberton's profits, less dividends received.
Crew has agreed to sell its interest to Metorex Limited ("Metorex"), one of its partners in Barberton and a company listed on the JSE, in return for Metorex shares valued at approximately ZAR 84 million, representing a significant increase over both the cost and carrying value of the investment. The profit on sale will be recognised in the Financial Statements for Q1 2007.
Crew's stated strategy is to have overall control of its projects and to focus resources on near term production projects; this disposal is in line with this strategy. The sale is subject to receipt of all necessary regulatory approvals.
Jan A. Vestrum
President & CEO
Safe Harbour Statement
Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Crew is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to Crew Acquisition Corp.'s intention to proceed with the compulsory acquisition. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "does not expect," "is expected," "targets," "budget," "estimates," "forecasts," "intends," "anticipates" or "does not anticipate," or "believes," or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, "may," "could," "would," "might," or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the price of gold, fluctuations in financial markets, investor interest in the proposed private placement. Although Crew has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.