Tuesday 20 December 2011

European Goldfields mulls Qatari fallback option | Reuters

European Goldfields , which has agreed a C$2.5 billion ($2.4 billion) takeover by Canadian group Eldorado Gold, is hoping to keep an investment deal with Qatar's sovereign wealth fund as a fallback option.


Qatar Holdings agreed in October to provide a $600 million project financing loan to European Goldfields, which has development stage assets in Greece and Romania, in its first investment in a gold miner. It also provided a $150 million loan note and a related warrant issue, and became a major shareholder, with a 9.9 percent stake.


Eldorado's strong balance sheet means European Goldfields is unlikely to need the cash from Qatar if the takeover goes through -- but it does need two-thirds of shareholders to back the deal when they vote in February.


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