OAO Severstal announced that it has reached agreement to purchase up to a 61.5% stake in African Iron Ore Group Ltd which owns, through subsidiaries the exploration rights for an iron ore deposit at Putu Range area in Liberia.

The released added that in addition Severstal will acquire a 6.29% stake in Mano River Resources Inc together with share warrants exercisable within a period of 18 months. If exercised in full, the warrants will convert into shares representing approximately 6.29% of the current issued share capital of Mano River Resources Inc. prior to giving effect to the issuance of shares to Severstal.

The purchase of the AIOG controlling stake and ࠶.29% stake in Mano River will be affected through Severstal’s indirect wholly owned Dutch subsidiary Lybica Holding B.V. Severstal will pay USD 37.5 million for 61.5 % stake in AIOG and EUR 2 million for the 6.29% stake in Mano River Resources Inc.

The agreement to purchase the AIOG stake contains customary warranties and indemnities provided by Mano to Severstal and completion is subject to Mano River Resources converting its exploration license into a Mineral Development Agreement in addition to customary conditions to closing, including approval of the TSX Venture Exchange and completion of satisfactory due diligence by Severstal.

Mr Roman Deniskin CEO of Severstal Resurs said “The purchase of this iron ore deposit in Western Africa is a significant step in the dynamic development of the Severstal mining business. From this new region we will supply production to the European and North American markets.”

According to preliminary data, it is estimated that the Putu Range deposit contains at least 500 million tonnes of iron ore. This number may substantially increase as a result of a detailed exploration exercise which is planned by Severstal Resurs.

SHANGHAI, China, May 21 /Xinhua-PRNewswire/ — China Precision Steel a niche precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products, today announced that the Company will present at the upcoming Credit Suisse Boston China Opportunities Conference in Boston. Continue reading ‘NEW DELHI: steel prices ended mixed on the wholesale metal market here on Thursday mainly on sluggish demand from stockists.’ »

NEW DELHI: steel prices ended mixed on the wholesale metal market here on Thursday mainly on sluggish demand from stockists.

Traders said subdued demand from stockists following slow down in constructions activity mainly kept prices unchanged.

Meanwhile, in the saria section Kamdhenu 8-mm, 10-mm, 12-mm, 16-25mm and 25-32mm were unchanged at Rs 39,600, Rs 38,600, Rs 37,100, Rs 39,100 and Rs 39,300 per tonne respectively.

MUMBAI: Share prices of Tata Steel, India’s biggest steelmaker, fell marginally by 1.49 percent even as Goldman Sachs Group Inc had raised its rating from neutral to buy the other day.

The stock was trading at Rs 908.50 in the evening losing 13.95 points from the previous close. The stock advanced 18 percent last month, the most since October 2007.

Analysts said that benchmark sensex at 16,907 was lower by 336.05 points against the previous close mainly triggered by weak global markets and high global prices.

In the case of Tata Steel scrip,  Goldman had raised the target price by 51 percent to 1,120 rupees from 742 rupees. The Mumbai-based steelmaker sells more than two-thirds of its output in Europe after the company bought Corus Group Plc in January last year for $13 billion in the largest takeover by an Indian company.

Meanwhile the Sensex had fallen to an intraday low of 16,863.38. The wide-based National Stock Exchange index’s Nifty moved down by 96.85 points to 5,020.80.

Marketmen said reports of weakening trends in overseas stock markets after oil prices spiked to another record high of nearly $135 a barrel and the US Federal Reserve slashing 2008 growth forecast, mainly influenced the trading sentiments here.

At the US stock markets, Dow Jones Industrial Average plummeted 227.49 points, or 1.77 per cent while the tech-dominant Nasdaq composite dropped 43.99 points.