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US Energy selling Sutter Gold to RMB Resources

By Associated Press
June 13, 2008 | Comments (0)

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U.S. Energy Corp., which produces petroleum and metals, said Friday it will sell 39.1 million shares of Sutter Gold Mining Inc. for about 5.4 million Canadian dollars ($5.3 million).

The sale of the stock, which represents 49.9 percent of Sutter's outstanding shares, to RMB Resources Ltd. is set to close at the end of next month, said U.S. Energy, which currently owns 54.4 percent of Sutter.

Sutter's gold mining work is focused in California.

RMB, which is buying the shares as an investment, also received the right to vote U.S. Energy's remaining Sutter shares.

A wholly owned unit of the Rand Merchant Bank division of Sydney, Australia-based FirstRand Bank, RMB is expected to help finance Sutter's working capital needs.

Shares of U.S. Energy fell 10 cents, or 3.2 percent, to $3.05 in afternoon trading.

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