EGU European Gold

RNS Number:4673Y
European Goldfields Ltd
15 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 an
underwriting agreement for an equity financing with RBC Capital Markets as lead
manager to a syndicate of underwriters including Evolution Securities Ltd,
Raymond James Ltd, Dundee Securities Corporation and Orion Securities Inc. The
total offering of 27 million common shares of the Company (the "Shares")
consists of a treasury offering of 24 million shares and a secondary offering of
three million shares on the same terms as the treasury offering, as disclosed in
the Company's press release of June 1, 2007.  The offering was priced at
Cdn$5.00 (or GBP 2.375) per common share for gross proceeds to the Company of
Cdn$120 million and Cdn$15 million to the selling shareholder.  The Company will
not be entitled to any of the proceeds of the secondary offering.

The underwriters will have an option, exercisable for a period of 30 days from
the date of closing, to purchase an additional 3.6 million common shares of the
Company at a price equal to the offering price to cover over-allotments and for
market stabilization purposes.

The Company intends to use the net proceeds of the treasury offering for the
development of its projects in Greece and Romania, and for general corporate
purposes.

Closing of the offering is subject to certain conditions, including, but not
limited to, receipt of all necessary securities regulatory approvals (including
the approval of the Toronto Stock Exchange). The preliminary short form
prospectus has been filed on SEDAR at www.sedar.com.

The Shares have not been, nor will be, registered under the United States
Securities Act of 1933, as amended, or any state securities laws and may not be
offered or sold in the United States absent registration or applicable exemption
from the registration requirement of such Act and applicable state securities
laws. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to qualification under the securities laws of any such jurisdiction.
Any public offering of securities to be made in the United States would, if
made, be made by means of a prospectus that could be obtained from the Company
that would contain detailed information about the Company and management as well
as financial statements.

About European Goldfields

European Goldfields is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and
South-East Europe.

Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic projects of Stratoni and Olympias which contain
gold, zinc, lead and silver, and the Skouries copper/gold porphyry body.  Hellas
Gold commenced production at Stratoni in September 2005 and selling an existing
stockpile of Olympias gold concentrates in July 2006. Hellas Gold is applying
for permits to develop the Skouries and Olympias projects. European Goldfields
has entered into an agreement to acquire an additional 30% interest in Hellas
Gold, which would increase European Goldfields' interest to 95%.

Romania - European Goldfields owns 80% of the Certej gold/silver project in
Romania. European Goldfields submitted in March 2007 a technical feasibility
study to the Romanian government, in support of a permit application to develop
the project.

For further information please contact:

European Goldfields:                    e-mail: info@egoldfields.com
David Reading, Chief Executive Officer  Office: +44 (0)20 7408 9534

RBC Capital Markets                     Office: +44 (0)20 7653 4093
Patrick Meier / Peter Barrett-Lennard

Evolution Securities                    Office: +44 (0)20 7071 4300
Frank Moxon / Simon Edwards

Buchanan Communications:                e-mail: bobbym@buchanan.uk.com
Bobby Morse / Ben Willey                Office: +44 (0)20 7466 5000

Renmark Financial Communication:        e-mail: nmurraylyon@renmarkfinancial.com
Neil G. Murray-Lyon                     Office: +1 514 939 3989

Forward-looking statements

Certain statements and information contained in this document, including any
information as to the Company's future financial or operating performance and
other statements that express management's expectations or estimates of future
performance, constitute forward-looking information under provisions of Canadian
provincial securities laws. When used in this document, the words "anticipate",
"expect", "will", "intend", "estimate", "forecast", "planned" and similar
expressions are intended to identify forward-looking statements or information.
Forward-looking statements include, but are not limited to, the estimation of
mineral reserves and resources, the timing and amount of estimated future
production, costs and timing of development of new deposits, permitting time
lines and expectations regarding metal recovery rates. Forward-looking
statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and contingencies.
The Company cautions the reader that such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual financial results, performance or achievements of the Company to be
materially different from its estimated future results, performance or
achievements expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future performance. These
risks, uncertainties and other factors include, but are not limited to: changes
in the price of gold, base metals or certain other commodities (such as fuel and
electricity) and currencies; uncertainty of mineral reserves, resources, grades
and recovery estimates; uncertainty of future production, capital expenditures
and other costs; currency fluctuations; financing and additional capital
requirements; the successful and timely permitting of the Company's Skouries,
Olympias and Certej projects; legislative, political, social or economic
developments in the jurisdictions in which the Company carries on business;
operating or technical difficulties in connection with mining or development
activities; the speculative nature of gold and base metals exploration and
development, including the risks of diminishing quantities or grades of
reserves; the risks normally involved in the exploration, development and mining
business; and risks associated with internal control over financial reporting.
For a more detailed discussion of such risks and material factors or assumptions
underlying these forward-looking statements, see the Company's Annual
Information Form for the year ended 31 December 2006, filed on SEDAR at
www.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 new
information, future events or otherwise, except as required by law.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END
AGRFAMITMMIBBJR

European Gold (LSE:EGU)
Historical Stock Chart
From Jun 2024 to Jul 2024

European Gold (LSE:EGU)
Historical Stock Chart
From Jul 2023 to Jul 2024