Completion of Acquisition
November 30 2004 - 3:00AM
UK Regulatory
RNS Number:8012F
European Goldfields Ltd
30 November 2004
Level 3
11 Berkeley Street
London W1J 8DS
United Kingdom
Phone: +44 (20) 7408 9534
Fax: +44 (20) 7408 9535
For Immediate Release 30 November 2004
European Goldfields Limited
Completion of Acquisition of a Controlling Interest in Hellas Gold
Appointment of Dimitrios Koutras as Non-Executive Chairman
European Goldfields Limited (AIM: EGU / TSX-V: EGU) ("European Goldfields" or
the "Company"), a resource company involved in the acquisition, exploration and
development of mineral properties in Romania, Greece and the Balkans, is pleased
to announce that it has completed today its previously announced acquisition of
an additional 35% interest in Hellas Gold S.A. ("Hellas Gold"), increasing its
total interest in Hellas Gold to 65%. The Company also completed its related #40
million placing of Common Shares.
The Company's partner, Aktor S.A. (the largest construction company in Greece),
will retain the remaining 35% interest in Hellas Gold, through a wholly-owned
subsidiary.
European Goldfields now has 111,748,708 shares in issue, giving European
Goldfields a market capitalisation of #163,712,000 (C$352,008,000) at
yesterday's closing share price.
David Reading, Chief Executive Officer of European Goldfields, said:
"We are delighted that we have successfully completed this company-making
transaction. With the new simplified structure of Hellas Gold with our partner
Aktor, a key part of our ongoing strategy, our next challenge will be to get the
required permitting in order to develop these substantial assets. The Board of
European Goldfields would also like to welcome Dimitrios Koutras as European
Goldfields' non-executive Chairman and substantial shareholder, and we look
forward to working with him in developing the Company into one of the major
mining companies in the Balkans."
Hellas Gold Assets
Hellas Gold owns assets in Northern Greece which include 70 year mining
concessions over a total area of 317 km2 including three deposits known as
Olympias, Stratoni and Skouries. The Stratoni and Olympias deposits were
previously in production and benefit from significant infrastructure which
includes underground mining development, two plants and a ship loading facility
on the Aegean Sea. Hellas Gold's assets also include potential revenue
generating stockpiles located on the surface. Refurbishment of existing mine and
plant infrastructure is currently in progress as well as a review of an optimum
way forward for the multi-million ounce deposits of Olympias and Skouries.
The Greek assets include three polymetallic near-production deposits with total
proven and probable reserves of 17.04Moz of gold equivalent, as derived from a
Prefeasibilty Study of the Greek assets prepared by Behre Dolbear & Company,
Inc. and filed on SEDAR at www.sedar.com on 29 October 2004 under the category
"Technical Report". Resources and reserves are allocated amongst the three
deposits as follows:
Hellas Gold Resources
Deposit '000t Au Au Ag Ag Ag Pb Pb Pb Zn Zn Zn Cu Cu Cu Total
g/t Moz g/t Moz as % '000t as % '000t as % '000t As Au
Au Au Au Au Eq
Eq Eq Eq Eq Moz *
Moz Moz Moz Moz
* * * *
Olympias
Measured 10,096 9.03 2.93 113.0 36.67 0.58 3.64 367 0.68 4.89 494 1.39 - - - 5.57
Indicated 4,432 9.94 1.42 164.2 23.40 0.37 5.41 240 0.44 7.14 316 0.89 - - - 3.12
Total 14,528 9.31 4.35 128.6 60.06 0.94 4.18 607 1.12 5.58 810 2.27 - - - 8.69
Skouries
Measured 180,400 0.83 4.81 - - - - - - - - - 0.55 992 6.46 11.28
Indicated 10,800 0.61 0.21 - - - - - - - - - 0.47 51 0.33 0.54
Total 191,200 0.82 5.03 - - - - - - - - - 0.55 1,043 6.79 11.82
Stratoni
Measured 1,346 - - 202.0 8.74 0.14 8.51 115 0.21 10.72 144 0.41 - - - 0.75
Indicated 875 - - 203.0 5.71 0.09 8.74 76 0.14 12.56 110 0.31 - - - 0.54
Total 2,221 - - 202.4 14.45 0.23 8.60 191 0.35 11.44 254 0.71 - - - 1.29
Total - - - - - - - - - - - - - - - 21.80
* Gold equivalent ounces were calculated using the following metal prices,
representing the average of (i) the average metal prices from 1993 to 2003, and
(ii) the average metal prices from 1 January to 30 June 2004: Au: US$369/oz; Ag:
US$5.79/oz; Pb: $0.31/lb; Zn: $0.47/lb; Cu: $1.09/lb.
Hellas Gold Reserves
Deposit '000t Au Au Ag Ag Ag Pb Pb Pb Zn Zn Zn Cu Cu Cu Total
g/t Moz g/t Moz as % '000t as % '000t as % '000t as Au
Au Au Au Au Eq
Eq Eq Eq Eq Moz *
Moz Moz Moz Moz
* * * *
Olympias
Proven 10,096 8.10 2.63 108.6 35.25 0.55 3.5 353 0.65 4.6 464 1.30 - - - 5.14
Probable 3,949 9.70 1.23 147.8 18.77 0.28 4.9 194 0.36 6.6 261 0.73 - - - 2.62
Total 14,045 8.55 3.86 119.6 54.02 0.83 3.89 547 1.01 5.16 725 2.04 - - - 7.76
Skouries
Probable 129,500 0.89 3.71 - - - - - - - - - 0.56 725 4.72 8.43
Total 129,500 0.89 3.71 - - - - - - - - - 0.56 725 4.72 8.43
Stratoni
Proven 867 - - 178.0 4.96 0.08 7.5 65 0.12 9.5 82 0.23 - - - 0.43
Probable 775 - - 179.0 4.46 0.07 7.7 60 0.11 11.1 86 0.24 - - - 0.42
Total 1,642 - - 178.5 9.42 0.15 7.61 125 0.23 10.25 168 0.47 - - - 0.85
Total - - - - - - - - - - - - - - - 17.04
* Gold equivalent ounces were calculated using the following metal prices,
representing the average of (i) the average metal prices from 1993 to 2003, and
(ii) the average metal prices from 1 January to 30 June 2004: Au: US$369/oz; Ag:
US$5.79/oz; Pb: $0.31/lb; Zn: $0.47/lb; Cu: $1.09/lb.
Further, the Company considers the prospects and exploration potential on the
317 km2 of mining concessions to be high and the discovery, over time, of an
equal amount of new mineralisation to that previously produced and discovered
likely.
Appointment of Director
European Goldfields is pleased to announce the appointment of Dimitrios Koutras
as Director. Since 1995, Dimitrios Koutras has been President and General
Manager of Aktor S.A., the largest construction company in Greece. Mr. Koutras
has also been acting as President of Hellas Gold since December 2003. Mr.
Koutras is a Mineralurgist Engineer and a member of the Greek Technical Chamber
and of the Greek Mineralurgist Association. Dimitrios Koutras, aged 60, has been
a director of Aktor S.A., Hellas Gold S.A. and Attiki Odos JV in the last 5
years. There are no other matters under paragraph (f) of Schedule 2 of the AIM
rules to be disclosed.
Issuance of Milestone Shares
The Company announces that it has issued an aggregate of 405,000 common shares
at a deemed price of C$3.07 per share (#1.35 per share) to Senior Officers under
the Company's Milestone Share Compensation Plan. Application has been made for
the 405,000 common shares to be admitted to trading on AIM and it is expected
that admission will occur on 6 December 2004.
Forward-Looking Statements
This news release contains certain forward-looking statements concerning the
Company's future operations, economic performances, financial conditions and
financing plans. These statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other
factors the Company believes are appropriate in the circumstances. However,
whether actual results and developments will conform with the Company's
expectations and predictions is subject to a number of risks, uncertainties and
assumptions. Consequently, all of the forward-looking statements made in this
news release are qualified by these cautionary statements, and there can be no
assurance that the results or developments anticipated by the Company will be
realised or, even if substantially realised, that they will have the expected
consequences to or effects on the Company and its subsidiaries or their
businesses or operations. The Company undertakes no obligation and does not
intend to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required under
applicable law.
For further information please contact:
European Goldfields:
David Reading, Chief Executive Officer
David Grannell, Chief Financial Officer
London Office: +44 (0)20 7408 9536 e-mail: info@egoldfields.com
London Mobile: +44 (0)7703 190 652 website: www.egoldfields.com
Buchanan Communications:
Bobby Morse / Ben Willey +44 (0)20 7466 5000 e-mail: bobbym@buchanan.uk.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release and the information contained herein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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