Share Subscription Agreement with Eldorado Gold Corporation
(Thomson Reuters ONE) -
SERABI MINING plc
("Serabi" or "the Company")
SHARE SUBSCRIPTION AGREEMENT WITH ELDORADO GOLD CORPORATION RAISING GROSS
PROCEEDS OF £3,600,000 aT 3.0 PENCE PER Ordinary SHARE
The Board of Serabi is pleased to announce that it has entered into a
conditional share subscription agreement (the "Subscription Agreement") with
Eldorado Gold Corporation ("Eldorado" TSX:ELD, NYSE:EGO, ASX:EAU) a
Canadian-based gold producer with existing interests and operations in Turkey,
China, Brazil and Greece.
Under the terms of the Subscription Agreement, Serabi has agreed to issue to
Eldorado 120,000,000 new Ordinary Shares of 0.5 pence each in the Company (the
"Subscription Shares") at a price per Ordinary Share of 3.0 pence. Following the
subscription, Eldorado will hold 26.8 per cent. of the entire issued share
capital of the Company and the Company will have a total of 447,740,595 Ordinary
Shares in issue. Eldorado has agreed not to dispose of these Ordinary Shares for
a 12 months period following their admission to trading.
The Company has also agreed that provided Eldorado continues to own 15 per cent.
or more of the issued share capital of the Company, Eldorado will have the right
to nominate a Director to the Board of the Company.
Completion of the Subscription Agreement is due to take place on 17 June 2010
and is conditional upon the Subscription Shares being admitted to AIM.
The Company has granted Eldorado warrants exercisable at any time for a period
of 2 years over a further 15 million new Ordinary Shares exercisable at 4.0
pence per new Ordinary Share.
The Company has also granted an option entitling Eldorado to subscribe for such
number of new Ordinary Shares as would enable Eldorado to maintain its
percentage interest in the share capital of the Company in the event that the
Company issues new Ordinary Shares for cash (or cash equivalent), provided that
Eldorado continues to own 15 per cent. or more of the issued share capital of
the Company.
Mike Hodgson, the Chief Executive of Serabi, commenting on the announcement
said: "The subscription by a strategic investor of the stature of Eldorado is an
endorsement of what we are seeking to achieve and the strategy to focus on
exploration that we are pursuing. This subscription taken together with
Eldorado's proposed acquisition of Brazauro Resources Corp and its Tocantinzinho
project located to the north west of Palito, indicates that Eldorado is willing
to make a strong commitment to the Tapajos and the region's potential. Eldorado
has paid a premium over the current market price which we believe illustrates
their confidence in the potential of Palito and Serabi."
The proceeds from the Subscription Agreement will enable the Company to extend
its current exploration programmes at Palito and support further IP surveys over
the remaining VTEM targets. The results from the initial survey have served to
strengthen our belief that we will discover additional satellite ore bodies
around Palito. Dependent on the results of these further IP surveys and the
first drilling results on the recently identified 9 drill targets, Serabi is now
in a position to embark on a second stage drill programme later in the year.
Enquiries:
Serabi Mining plc
Mike Hodgson Tel: 020 7246 6830
Chief Executive Mobile: 07799 473621
Email: contact(at)serabimining.com
Website: www.serabimining.com
Beaumont Cornish Limited
Nominated Adviser and Broker
Roland Cornish Tel: 020 7628 3396
Michael Cornish Tel: 020 7628 3396
Farm Street Communications
Public Relations
Simon Robinson Tel: 020 7009 2212
simon.robinson(at)farmstreetmedia.com Mobile: 07593 340107
About Eldorado Gold Corporation
Eldorado Gold Corporation ("Eldorado") which has its shares listed in Canada
(TSX), United States (NYSE) and Australia (ASX) has its head office in
Vancouver, Canada, and is an international mid tier gold producer active in
development and exploration with a market capitalization in excess of $9billion
and proven and probable gold reserves of over 12 million ounces. Eldorado
operates the Ki?lada? gold mine in Turkey; the Jinfeng, Tanjianshan and White
Mountain gold mines in China and is constructing the Efemçukuru mine in Turkey
and the Eastern Dragon mine in China. Eldorado is developing the Perama Hill
project in Greece and is exploring in Brazil, China, Turkey and Nevada in the
United States. Eldorado's goal is to produce over 1 million ounces of gold
annually by 2013 and, as one of the lowest cost gold producers with a strong
balance sheet and no hedge positions, is well positioned to grow in value as it
creates and pursues new opportunities in gold and other resources.
Further information on Eldorado is available at www.eldoradogold.com
Further information on Serabi is available at www.serabimining.com
Forward-looking statements
This press release includes certain forward-looking statements. All statements,
other than statements of historical fact, included herein, including without
limitation, statements regarding the future plans and objectives of Serabi, are
forward-looking statements that involve various known and unknown risks and
uncertainties as well as other factors. Such forward-looking statements are
subject to a number of risks and uncertainties that may cause actual results or
events to differ materially from current expectations, including delays in
obtaining or failure to obtain required regulatory approvals. There can be no
assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Any forward-looking statements speak only as of the date hereof and, except as
may be required by applicable law, Serabi disclaim any obligation to update or
modify such forward-looking statements, either as a result of new information,
future events or for any other reason.
[HUG#1424206]
Unternehmensinformation / Kurzprofil:
Datum: 16.06.2010 - 08:00 Uhr
Sprache: Deutsch
News-ID 22510
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
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