Settlement with Oxus Gold Plc

19 Feb 2008 07:00

Eurogold Limited19 February 2008 EUROGOLD L I M I T E D (ACN 009 070 384) 19 February 2008 ASX & AIM Symbol "EUG" Settlement of Federal Court Proceedings against Oxus Gold Eurogold Limited ("Eurogold") and its wholly owned subsidiary Eurogold Holdings(Bermuda) Limited ("EHBL") has agreed with Oxus Holdings (Malta) Limited("OHML")and Oxus Gold Plc ("Oxus") to settle the proceedings commenced in 2006by Eurogold and EHBL. As previously announced Eurogold and EHBL commenced proceedings against Oxus andOHML for damages arising from the termination by OHML and Oxus of the Asset SaleAgreement entered into on 30 April 2006 for the sale of Eurogold's Ukrainiangold assets. Without accepting any liability Oxus has agreed to settle the dispute and payEurogold A$7,950,000 made up of cash of approximately A$6,780,000 and Oxusshares to the value of approximately A$1,170,000. Of the cash component A$5,060,000 is payable on or before 31 March 2008 and thebalance of A$1.72 million by 6 May 2008. IMF Australia (Limited) On 22 December 2006 Eurogold entered into an agreement with IMF (Australia)Limited ("IMF") under which IMF funded the Australian Federal Court proceedingagainst Oxus. Under the terms of the agreement IMF are entitled to receive 30%of the total proceedings received from the settlement. Resource Invest LLC In July 2007 Eurogold disposed of its Ukrainian gold mining assets to ResourceInvest LLC ("RIL") for US$5 million. US$2 million has been received and thebalance of US$3 million is due from RIL upon a regulatory milestone relating tothe advancement of the Saulyak Gold Project being met. Upon receipt of the US$3,000,000 from RIL, settlement with Oxus and afterpayment to IMF, the Company's cash position will be approximately A$10,000,000.The Company's combined cash and Oxus share holding value will be approximately3.5 cents per share (based on today's price of Oxus shares). The Directors' continue to pursue new investment opportunities. Peter Gunzburg Chairman For further information, please contact: Peter Gunzburg - Managing Director - Ph: +61 8 9481 0572, Email:peter@eurogold.com.au. RFC Corporate Finance Ltd acts as Eurogold's Nominated Adviser Contact: Stuart Laing - Ph: +61 8 9480 2506, Email: stuartl@rfc.com.au. This information is provided by RNS The company news service from the London Stock Exchange