Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
MATERIAL FACT
COMPANHIA SIDERRGICA NACIONAL
Publicly-held Company
Rua São José n.° 20, Grupo 1602, parte
Rio de Janeiro/RJ
Corporate Taxpayer’s ID (CNPJ/MF): 33.042.730/0001 -04
COMPANHIA SIDERÚRGICA NACIONAL (“CSN”), pursuant to Article 157 of Law 6,404/76 and CVM Instruction 358/02, hereby informs its shareholders and the general public that on July 20, 2007, its wholly-owned subsidiary NACIONAL MINÉRIOS S.A. (“NAMISA”) entered into a purchase agreement with the shareholders of Cia. de Fomento Mineral e Participaes CFM (“CFM”) for the acquisition of 100% of the shares issued and outstanding by CFM.
CFM explores various iron ore mines and owns ore processing facilities in the state of Minas Gerais. CFM sold approximately 3.6 million tonnes of iron ore in 2006 and in the first half of 2007 sold approximately 2.7 million tonnes. The company is enlarging the production capacity of its facilities and in 2008, CFM’s sales are expected to reach 8 million tonnes of iron ore.
The acquisition price may amount up to US$440 million, of which US$100 million was paid upon the execution of the purchase agreement, and US$250 million will be paid on August 1st, 2007. The remaining US$90 million may be paid in four installments within two years upon the fulfillment of certain conditions of the purchase agreement. The financial resources for the acquisition of CFM shall be obtained with funds raised in the financial markets.
The acquisition of CFM by NAMISA represents another step in CSN’s strategy of conquering a larger share of the mining sector, thus, increasing its potential of creating value for its shareholders
Rio de Janeiro, July 23, 2007.
Companhia Siderúrgica Nacional
Benjamin Steinbruch
Investor Relations Executive Officer
COMPANHIA SIDERÚRGICA NACIONAL |
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By: |
/S/ Benjamin Steinbruch
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Benjamin Steinbruch
Chief Executive Officer and Investor Relations Officer |
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By: |
/S/ Otávio de Garcia Lazcano
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Otávio de Garcia Lazcano
Chief Financial Officer |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.