PARIS, September 30 /CNW/ - EURO Ressources S.A. (TSX:EUR) (Paris:EUR)
announced that it has now received a "visa" from the Autorite des Marches
Financiers (the French securities regulatory authority) for a rights offering
of common shares to be made to EURO'S shareholders. This follows confirmation
of acceptance from the securities regulatory authorities of each of the
Canadian provinces for the related filings made in Canada.
James H. Dunnett, Directeur-General of EURO said: "We are pleased that we
are now able to proceed with an offering of new shares to our existing
shareholders at a time of strong gold prices and increased interest in gold
assets. While a rights issue is a common process for raising equity in Europe,
it is unusual in North America and the process of gaining regulatory approval
has taken time.
"This issue will provide nearly $11 million (EUR 7.6 million) in equity
capital to better balance our capital structure. The acquisition of Rosebel in
2004 was made solely with debt and it is now appropriate to repay these high
cost liabilities. We will also strengthen our working capital position which
will allow EURO to further reduce its gold hedge. This hedge has already been
reduced from over 100,000 ounces to nearly 50,000 ounces. A further reduction
in hedging will give us greater exposure to benefit from increases in the gold
"We look forward to the next stage of the company's development as a
European gold royalty company. The anticipated expansion of production at
Rosebel will enhance our 'signature' asset and give us a solid base to
continue to grow the Company. Golden Star also reports good progress on Paul
Isnard, our historic gold-producing asset in French Guiana. Fellow
shareholders, we are well placed to reap the benefits of the continuing rise
in the gold price and the further development of the Company's existing gold
assets. I hope you will enjoy the journey with me!"
Each shareholder will receive one right for every share held. Five rights
will entitle the holder to purchase one additional common share from EURO upon
payment of EUR 0.75 Holders of rights will also have an additional
(second-stage) subscription privilege to subscribe for any common shares not
taken up on the exercise of preferent rights. Up to 10,098,576 shares will be
To comply with the settlement requirements of the TSX, the shares will
trade ex-rights in Canada from October 3, 2007 on the TSX and from October 9,
2007 on Euronext. The record date is October 8, 2007. The rights will be
listed for trading on the Euronext Paris exchange from October 9, 2007 and
will be exercisable until November 2, 2007. The common shares to be issued
upon exercise of the rights will be listed on both the Euronext Paris exchange
and the Toronto Stock Exchange.
The Directors of the Company have undertaken to subscribe for all the
rights to their shareholdings, and to subscribe for additional shares. The
principal shareholders of the Company, Xystus Holdings Corp. Ltd. and
Tocqueville Asset Management LP have given undertakings to the Board to
similarly subscribe for all of their entitlements.
Further, the Board has obtained specific stand-by commitments from Golden
Star Resources Ltd and Macquarie Bank Limited to purchase unsubscribed shares,
at the Board's discretion. In total, these commitments and undertakings equal
approx. 77% of the total offering.
Full details of the offering, including the process to be followed to
exercise the rights, will be set out in the French prospectus, which will be
available on EURO's website. Canadian resident registered shareholders will
also receive a rights offering circular, which will be mailed to them on or
before October 11, 2007. The rights offering is not being extended to
shareholders resident in the United States. EURO will utilize the net proceeds
of the offering to repay outstanding indebtedness and residual obligations
arising from the acquisition of the Rosebel Royalty and to increase working
The Canadian rights offering circular and the French Prospectus will be
filed and available on www.sedar.com.
EURO is a French company, presently focused on acquiring and holding
royalties and similar interests on operating gold mines. EURO has
approximately 50.5 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements. Investors are
cautioned that forward-looking statements are inherently uncertain and involve
risks and uncertainties that could cause actual results to differ materially.
Such statements include comments regarding the Company's intentions regarding
the acquisition of other corporations and additional royalty or mineral
interests as well as the operations and results of the Rosebel gold mine.
There can be no assurance that future developments affecting the Company or
the Rosebel gold mine will be those anticipated by management.
Not for distribution to United States newswire services or for
dissemination in the United States. The securities referred to herein have not
been registered under the US Securities Act of 1933 and may not be offered or
sold in the United States or to a US person absent registration or an
applicable exemption from registration.
Additional information relating to EURO Ressources S.A. is available on
SEDAR at www.sedar.com. Further requests for information should be addressed
James H. Dunnett, Susanne A. Hermans
Directeur-General Vice-President Finance
Tel: +1-604-710-2242 Tel: +1-303-204-7771
Email: firstname.lastname@example.org Email: email@example.com
For further information:
For further information: EURO Ressources S.A. James H. Dunnett,
+1-604-710-2242 Directeur-General firstname.lastname@example.org Susanne A. Hermans,
+1-303-204-7771 Vice-President Finance email@example.com