EGU.L Share News (EGU)

European Goldfields has agreed heads of terms with Qatar Holding for the provision of a $600m seven year senior secured loan facility with equity participation. The loan, which is secured over the firm's Greek assets, is to be used primarily for the development of the firm's gold projects in Greece. Following the agreement, stock broker Evolution Securities maintained its buy rating and 1,000p target on the firm. The company also proposes to offer unsecured loan notes with warrants for $150m which will be made available to existing shareholders on the same terms as the facility. A total $750m is expected to be generated and will fully finance the company's entire project portfolio. Gemfields more than doubled its revenues for the year to the end of June while reducing its sales costs, boosting pre-tax profits by around $18m. Revenues grew from $19.9m to $40m while profit before tax soared to £19.9m (2010: $1.5m). "While the year ahead offers a number of challenges Gemfields believes it will be able to deliver its internal growth and expansion targets," the group said. Toledo Mining has received $1.5m after settling its loan to Atlas Consolidated Mining and Development worth a total $4.5m. The loan was repaid in full and on time. NR