EGU.L Regulatory News (EGU)

15 Jun 2007 14:46

European Goldfields Ltd15 June 2007 For Immediate Release 15 June 2007 European Goldfields Limited CDN$135 Million Equity Offering NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES 15 June 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or "European Goldfields") is pleased to announce that it has entered into anunderwriting agreement for an equity financing with RBC Capital Markets as leadmanager to a syndicate of underwriters including Evolution Securities Ltd,Raymond James Ltd, Dundee Securities Corporation and Orion Securities Inc. Thetotal offering of 27 million common shares of the Company (the "Shares")consists of a treasury offering of 24 million shares and a secondary offering ofthree million shares on the same terms as the treasury offering, as disclosed inthe Company's press release of June 1, 2007. The offering was priced atCdn$5.00 (or GBP 2.375) per common share for gross proceeds to the Company ofCdn$120 million and Cdn$15 million to the selling shareholder. The Company willnot be entitled to any of the proceeds of the secondary offering. The underwriters will have an option, exercisable for a period of 30 days fromthe date of closing, to purchase an additional 3.6 million common shares of theCompany at a price equal to the offering price to cover over-allotments and formarket stabilization purposes. The Company intends to use the net proceeds of the treasury offering for thedevelopment of its projects in Greece and Romania, and for general corporatepurposes. Closing of the offering is subject to certain conditions, including, but notlimited to, receipt of all necessary securities regulatory approvals (includingthe approval of the Toronto Stock Exchange). The preliminary short formprospectus has been filed on SEDAR at www.sedar.com. The Shares have not been, nor will be, registered under the United StatesSecurities Act of 1933, as amended, or any state securities laws and may not beoffered or sold in the United States absent registration or applicable exemptionfrom the registration requirement of such Act and applicable state securitieslaws. This press release shall not constitute an offer to sell or thesolicitation of an offer to buy, nor shall there be any sale of these securitiesin any jurisdiction in which such offer, solicitation or sale would be unlawfulprior to qualification under the securities laws of any such jurisdiction.Any public offering of securities to be made in the United States would, ifmade, be made by means of a prospectus that could be obtained from the Companythat would contain detailed information about the Company and management as wellas financial statements. About European Goldfields European Goldfields is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania andSouth-East Europe. Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. HellasGold owns three major gold and base metal deposits in Northern Greece. Thedeposits are the polymetallic projects of Stratoni and Olympias which containgold, zinc, lead and silver, and the Skouries copper/gold porphyry body. HellasGold commenced production at Stratoni in September 2005 and selling an existingstockpile of Olympias gold concentrates in July 2006. Hellas Gold is applyingfor permits to develop the Skouries and Olympias projects. European Goldfieldshas entered into an agreement to acquire an additional 30% interest in HellasGold, which would increase European Goldfields' interest to 95%. Romania - European Goldfields owns 80% of the Certej gold/silver project inRomania. European Goldfields submitted in March 2007 a technical feasibilitystudy to the Romanian government, in support of a permit application to developthe project. For further information please contact: European Goldfields: e-mail: info@egoldfields.comDavid Reading, Chief Executive Officer Office: +44 (0)20 7408 9534 RBC Capital Markets Office: +44 (0)20 7653 4093Patrick Meier / Peter Barrett-Lennard Evolution Securities Office: +44 (0)20 7071 4300Frank Moxon / Simon Edwards Buchanan Communications: e-mail: bobbym@buchanan.uk.comBobby Morse / Ben Willey Office: +44 (0)20 7466 5000 Renmark Financial Communication: e-mail: nmurraylyon@renmarkfinancial.comNeil G. Murray-Lyon Office: +1 514 939 3989 Forward-looking statements Certain statements and information contained in this document, including anyinformation as to the Company's future financial or operating performance andother statements that express management's expectations or estimates of futureperformance, constitute forward-looking information under provisions of Canadianprovincial securities laws. When used in this document, the words "anticipate","expect", "will", "intend", "estimate", "forecast", "planned" and similarexpressions are intended to identify forward-looking statements or information.Forward-looking statements include, but are not limited to, the estimation ofmineral reserves and resources, the timing and amount of estimated futureproduction, costs and timing of development of new deposits, permitting timelines and expectations regarding metal recovery rates. Forward-lookingstatements are necessarily based upon a number of estimates and assumptionsthat, while considered reasonable by management, are inherently subject tosignificant business, economic and competitive uncertainties and contingencies.The Company cautions the reader that such forward-looking statements involveknown and unknown risks, uncertainties and other factors that may cause theactual financial results, performance or achievements of the Company to bematerially different from its estimated future results, performance orachievements expressed or implied by those forward-looking statements and theforward-looking statements are not guarantees of future performance. Theserisks, uncertainties and other factors include, but are not limited to: changesin the price of gold, base metals or certain other commodities (such as fuel andelectricity) and currencies; uncertainty of mineral reserves, resources, gradesand recovery estimates; uncertainty of future production, capital expendituresand other costs; currency fluctuations; financing and additional capitalrequirements; the successful and timely permitting of the Company's Skouries,Olympias and Certej projects; legislative, political, social or economicdevelopments in the jurisdictions in which the Company carries on business;operating or technical difficulties in connection with mining or developmentactivities; the speculative nature of gold and base metals exploration anddevelopment, including the risks of diminishing quantities or grades ofreserves; the risks normally involved in the exploration, development and miningbusiness; and risks associated with internal control over financial reporting.For a more detailed discussion of such risks and material factors or assumptionsunderlying these forward-looking statements, see the Company's AnnualInformation Form for the year ended 31 December 2006, filed on SEDAR atwww.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 newinformation, future events or otherwise, except as required by law. This information is provided by RNS The company news service from the London Stock Exchange