VANCOUVER, Canada, May 23, 2003 (PRIMEZONE) -- Crew Development Corporation ("Crew") (TSE:CRU) (OSE:CRU) (Frankfurt:KNC) (OTC BB:CRWVF): Crew Development Corp. (Crew) is pleased to announce that the purchase of ETC by the consortium of Crew, Metorex and MCI is concluded by the approval by the Metorex Extraordinary General Meeting held on May 21st 2003. Crew holds a 20% equity stake in ETC (to be renamed Barberton Mines Ltd.), where Metorex will act as operator for the consortium and take over operations on June 15th 2003. The ZAR 255 million acquisition is funded in part by a ZAR 105 million syndicated bank loan, and the remaining ZAR 150 million is funded through preference shares where Crew's participation is ZAR 30 million.
Crew's share of the transaction is funded through a previously announced agreement for the sale of 10 million Metorex shares at ZAR 3 per share. Based on historical production and cash costs the expected pay back period for the preference capital is less than 3 years. The operator believes there is room for cost reductions, improving the economics of the project.
Crew seeks to maintain a balanced portfolio of both exploration projects and cash generating projects. This acquisition, with a pay back period of less than 3 years and at least 10 year expected remaining mine life is in full alignment with Crew's strategic focus on gold and precious metals, as well as in line with the company's previously expressed intentions of entering into projects with existing or near-term cash flow. In combination with the forthcoming gold production from the Nalunaq gold mine in Greenland, as well as other projects where Crew is investigating the potential for near term production and cash flow, the acquisition of ETC strengthens Crew's ambition of becoming a growth oriented gold producer.
"Jan A. Vestrum"
President and CEO
For more information please contact our UK Head Office, TEL: +44 193-226-8755 or the Oslo Office at +47 22 12 16 50, email IR@crew.no . For more information about Crew, additional contact information or to subscribe to future news releases, please visit our new website:
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