TIDMEGU
RNS Number : 3722P
European Goldfields Ltd
03 October 2011
Suite 200, Financial Plaza
204 Lambert Street
Whitehorse, Yukon
Canada Y1A 3T2
For Immediate Release
Full finance package secured for project portfolio
Terms of US$600 million Loan Facility agreed with Qatar
Holding
US$150 million additional financing to be offered to existing
shareholders
Qatar Holding acquires shareholding in European Goldfields
3 October 2011 - European Goldfields Limited (TSX / AIM: EGU)
("European Goldfields" or the "Company") is pleased to announce
that it has agreed heads of terms ("Heads of Terms") with Qatar
Holding LLC ("Qatar Holding") for the provision of a US$600 million
7 year Senior Secured Loan Facility with Equity Participation (the
"Facility").
Pursuant to the Heads of Terms, the Facility will be structured
as a US$600 million 7 year loan at an interest margin of 7% above
6-month Libor per annum and will be repayable in 8 equal
instalments commencing in 2015 (the "Facility Agreement"). The loan
will be secured over the Company's Greek assets, including a pledge
of the shares of all intermediate holding companies, and will
contain certain informational and financial covenants. The Equity
Participation feature of the Facility will encompass the issuance
to Qatar Holding of warrants (the "Warrants") for the purchase of
40,444,913 shares in the Company at a strike price of C$9.08 per
share (equivalent to the 5 day VWAP on the TSX).
The Facility will be used primarily for the development of the
Company's Skouries and Olympias gold projects in Greece, for which
the Environmental Permit was recently granted, as well as general
corporate purposes.
The Company also proposes to offer unsecured loan notes with
warrants for US$150 million (the "Loan Notes") to be made available
to existing shareholders on the same economic terms as the
Facility. These Loan Notes will be listed on an international
exchange and will include the normal terms and conditions for such
an instrument. The aggregate proceeds of US$750 million from the
Facility and the Loan Notes are expected to fully finance the
Company's entire project portfolio.
The Company has also been advised that in two separate
transactions, Qatar Holding has acquired from Aktor Construction
International Limited ("Aktor") and Mr. Dimitrios Koutras
collectively, an aggregate 18,202,687 shares at C$10 per share
(representing 9.9% of the undiluted share capital of the Company)
and has entered into a call option agreement allowing it to acquire
a further 9,373,390 shares in the Company at a price of C$13 per
share. As a result and prior to the exercise of the call option,
Aktor now holds 22,447,246 shares (representing 12.2% of the
undiluted share capital of the Company) and Mr. Koutras holds
5,521,387 shares (representing 3.0% of the undiluted share capital
of the Company).
The Facility and related issuance of warrants are subject to
exclusivity, definitive documentation and shareholder and
regulatory approval.
Martyn Konig, Executive Chairman and President commented, "This
Facility from Qatar Holding represents not only a significant
commitment to the Company, but also to Greece. In these very
uncertain times, these financings will provide all of the
development capital required to bring the group's entire project
portfolio into production and allow us to accelerate the
development of all our projects. As such, this marks another very
significant milestone on our path towards becoming the largest gold
producer in Europe. Furthermore, we are delighted to welcome Qatar
Holding as a significant shareholder and key strategic partner,
particularly as this is their first investment into the gold
sector.
These transactions deliver a definitive solution to a number of
key issues overhanging the Company: we have secured debt financing
which, in terms of both size and coupon, is otherwise unavailable
in today's challenging market conditions, thereby delivering a
complete financing solution for our projects; the presence of Qatar
Holding as a strategic partner further demonstrates great
confidence in Greece as well as securing a liquidity event for our
Greek partners Ellaktor, without direct market impact. "
Commenting on the transaction, Mr. Ahmad Mohamed Al-Sayed,
Managing Director and Chief Executive Officer of Qatar Holding,
said: "This transaction reflects an outcome of the Memorandum of
Understanding between the State of Qatar and the Hellenic Republic
of Greece, signed in New York during 2010. Our latest investment
helps to further diversify our investment portfolio in the
commodities sector, with a specific position in gold resources and
another long-term partner secured for the future. We see the
transaction as one that will create a lot of value for all
shareholders, and represents our positive view on Greece in
general."
Lazard & Co., Limited advised the Directors of the Company
in respect of the transactions.
Liberum Capital and Evolution Securities provided the Company
with financial advice in respect of the transactions.
Conference call details
European Goldfields will host a conference call to update
investors and analysts on the contents of this release. The call
will be held today at 8:00am EDT / 1:00pm London, UK time.
Participants may join the call by dialling the number below,
approximately 5 minutes before the start of the call.
UK Free Call 0800 073 1806
-------------------------- --------------------
UK Standard International +44 (0) 1452 561 263
-------------------------- --------------------
USA Free Call 1866 223 0502
-------------------------- --------------------
Conference ID 15796263
-------------------------- --------------------
Certain statements and information contained in this document,
including any information as to the Company's future financial or
operating performance and other statements that express
management's expectations or estimates of future performance,
constitute forward-looking information under provisions of Canadian
provincial securities laws. When used in this document, the words
"anticipate", "expect", "will", "intend", "estimate", "forecast",
"planned" and similar expressions are intended to identify
forward-looking statements or information. Forward-looking
statements include, but are not limited to, the estimation of
mineral reserves and resources, the conversion of mineral resources
to mineral reserves, the timing and amount of estimated future
production, costs and timing of development of the Skouries,
Olympias and Certej projects, completion of various financing
options and permitting time lines. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies.
The Company cautions the reader that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual financial results, performance or
achievements of the Company to be materially different from its
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. These risks,
uncertainties and other factors include, but are not limited to:
changes in the price of gold, base metals or certain other
commodities (such as fuel and electricity) and currencies;
uncertainty of mineral reserves, resources, grades and recovery
estimates; uncertainty of future production, capital expenditures
and other costs; currency fluctuations; financing and additional
capital requirements; the receipt in a timely fashion of any
further permitting for the Company's projects; legislative,
political, social or economic developments in the jurisdictions in
which the Company carries on business; operating or technical
difficulties in connection with mining or development activities;
the speculative nature of gold and base metals exploration and
development, including the risks of diminishing quantities or
grades of reserves; the risks normally involved in the exploration,
development and mining business; and risks associated with internal
control over financial reporting. For a more detailed discussion of
such risks and material factors or assumptions underlying these
forward-looking statements, see the Company's Annual Information
Form for the year ended 31 December 2010, filed on SEDAR at
www.sedar.com. The Company does not intend, and does not assume any
obligation, to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by law.
For further information please see the Company's website at
www.egoldfields.com
For further information please contact:
European Goldfields Liberum Capital Limited
Steve Sharpe, SVP Business Development Simon Atkinson
e-mail: info@egoldfields.com Michael Rawlinson
Tel: +44 (0)20 7408 9534 Tel: +44 (0)20 3100 2000
Brunswick
Carole Cable / Fiona Micallef-Eynaud
e-mail: egoldfields@brunswickgroup.com
Tel: +44 (0)20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAFEAEEXFFFF
Grafico Azioni European Gold (LSE:EGU)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni European Gold (LSE:EGU)
Storico
Da Giu 2023 a Giu 2024