MANDATE FOR $300M HELLAS GOLD DEBT FINANCE SIGNED (0555Y)
December 16 2010 - 2:00AM
UK Regulatory
TIDMEGU
RNS Number : 0555Y
European Goldfields Ltd
16 December 2010
Suite 200, Financial Plaza
204 Lambert Street
Whitehorse, Yukon
Canada Y1A 3T2
For Immediate Release
MANDATE FOR US$300 MILLION HELLAS GOLD DEBT FINANCING SIGNED
16 December 2010 - European Goldfields Limited (TSX / AIM: EGU)
("European Goldfields" or the "Company") is pleased to announce the
signing of a mandate letter with a group of financial institutions
to arrange a US$300 million secured Term and Revolving Facility for
its Greek subsidiary Hellas Gold SA ("Hellas Gold"). The Facility
will be used to fund the development of the Skouries open pit and
associated processing facilities, the Olympias concentrator and
underground mine refurbishment and general corporate purposes. The
mandated lead arrangers are BNP Paribas, Caterpillar Financial
SARL, Investec Bank plc and UniCredit Bank AG, London Branch,
(together the "MLAs").
The mandate letter has been signed on the basis of a term sheet
which has been agreed between the Company and the MLAs, each of
which has received approval to proceed with the mandate through
their respective initial credit processes. The term sheet sets out
detailed terms and conditions of the debt financing which
include:
-- No gold or silver price hedging requirement
-- Security upon the Hellas Gold project assets
-- Scheduled tenor of 7 years
-- Separate term loan and revolving credit facility tranches
-- Sharing of surplus future project cash flows between the
Company and the MLAs, reducing the base case tenor of the term
loan
-- A guarantee from the Company of the debt payment obligations
of the Facility.
The Facility is subject to the receipt by Hellas Gold of the
relevant permits from the Greek Authorities, MLAs' technical, legal
and environmental due diligence, customary market conditions and
obtaining final internal credit approvals. The MLAs are in the
process of appointing an independent technical consultant.
This is an important further step in the development of the
Hellas Gold projects and in the Company's wider relationships with
the debt financing markets. European Goldfields is very pleased to
be working with such high quality financial institutions, all with
extensive experience and excellent credentials in global mining
finance.
About European Goldfields
European Goldfields is a developer-producer with globally
significant gold reserves located within the European Union. The
Company generates cash flow from its 95%-owned Stratoni operation,
a high grade lead/zinc/silver mine in North-Eastern Greece and the
sale of gold concentrates from Olympias. European Goldfields will
evolve into a mid-tier producer through responsible development of
its project pipeline of gold and base metal deposits at Skouries
and Olympias in Greece and Certej in Romania. The Company plans
future growth through development of its highly prospective
exploration portfolio in Greece, Romania and Turkey.
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, Senior Vice President Simon Atkinson
Business Development Tom Fyson
e-mail: info@egoldfields.com Tel: +44 (0)20 3100 2000
Tel: +44 (0)20 7408 9534
Brunswick Evolution Securities Limited
Carole Cable / Fiona Micallef-Eynaud Rob Collins
e-mail: egoldfields@brunswickgroup.com Tim Redfern
Tel: +44 (0)20 7404 5959 Tel: +44 (0)20 7071 4300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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