[ferro-alloys.com] Mechel OAO, one of the leading Russian mining and metals companies, said that its extraordinary general shareholders' meeting approved issuing of guarantee by Mechel OAO for performance of Mechel Group sellers' obligations under the sale-purchase agreement to the buyer, Yildirim Group.

This guarantee is a condition precedent for the deal's closure.

According to the sale purchase agreement signed in July 2013, Mechel Group sells its 100% stake in Tikhvin Ferroalloys Plant and Voskhod Mining Plant. Mechel Group's companies act as formal sellers and an SPV within Yildirim Group acts as a buyer. The deal amounts to 425 million US dollars. The deal is due to be closed by the end of 2013.

Tikhvin Ferroalloy Plant located in Tikhvin
Leningrad Region, it is a modern enterprise of a capacity to produce up to 120,000 tonnes per annum of high carbon ferrochrome used to produce stainless steel.

As raw material, the plant uses thechrome ore concentrate produced at Voskhod mining plant.

Voskhod Mining Plant located in Khromtau
Kazakhstan, it includes a modern chrome ore mine and a beneficiation plant for further processing of the ore and producing chrome ore concentrate. Voskhod's proved and probable reserves total 20 million tonnes of ore according to JORC standards.

Yildirim Group
A Turkey based private diversified industrial group comprising enterprises from ten different industries in various countries. The Group is the owner of ETI KROM INC., Turkey's largest producer of chrome ore as well as high-quality high-carbon ferrochrome, and of VARGON ALLOYS AB, one of the oldest ferrochrome plants in Sweden.