EVRAZ signs an agreement to sell the iron ore mining asset VGOK

EVRAZ plc (LSE: EVR) (�EVRAZ� or the “Company”) announces that it has signed a binding agreement for the sale of its wholly-owned subsidiary EVRAZ Vysokogorsky Iron Ore Mining and Processing Plant (“VGOK”) to NPRO URAL for US$20 million consideration, calculated on a debt free basis (the “Consideration”) (the “Transaction”). In addition, EVRAZ has agreed to provide of up to RUB400 million (up to approximately US$12.4 million) to VGOK for the purpose of normalising the working capital of VGOK. The Consideration will be payable in several instalments: an initial US$5 million payable at the completion of the Transaction, with the rest to be paid in equal monthly instalments during the next 24 months. The Transaction is subject to receipt of approval by the Russian Anti-Monopoly Service and certain corporate actions and is expected to be completed during October 2013.

EVRAZ will apply the proceeds from the sale for general corporate purposes.
Simultaneously with signing of the sale agreement, VGOK and EVRAZ have executed a three-year agreement for the supply of iron ore concentrate from VGOK to EVRAZ ZSMK on market terms and a 10-year agreement for the processing by VGOK of certain EVRAZ NTMK�s by-products. .