PARIS, December 4 /CNW/ - EURO Ressources S.A. (TSX: EUR)(Paris: EUR)
today announced that payment is being made to Golden Star Resources Ltd.
("Golden Star") of the amounts related to the Rosebel Royalty and their
subordinated loan. These amounts total approx US$8.1 million as set out in the
"use of proceeds" description of the rights issue.
James H. Dunnett, Directeur-General of EURO, commented: "Payment of these
amounts will have a positive impact on EURO's income statement through a
reduction in both interest costs and amortisation costs. The anticipated US$20
million residual purchase price for Rosebel has now been settled for a price
of US$4.4 million which is a substantial discount, particularly important as
IAMGOLD advances its plans to increase production at the mine."
Separately, Golden Star continues to progress the work program on the
Paul Isnard properties in French Guyana and anticipates that the full
expenditure commitment of EUR 1.215 million on the Paul Isnard PER will be
completed shortly. The early results from these activities remain promising.
EURO and Golden Star are working to conclude documentation of the previously
announced arrangements for the sale of Paul Isnard to Golden Star for a
royalty interest from production, with closing anticipated before year-end
James H. Dunnett, Directeur-General of EURO, commented: "We continue to
seek the appropriate method of reducing our gold hedge position, recognising
that this is best achieved using equity from the rights issue and other
working capital. Using deferral of payment to Golden Star could not be
accommodated within our existing credit arrangements with Macquarie Bank
"We are closely examining the alternative methods to effectively
de-hedge, or offset, a portion of our current hedge position with Macquarie.
This hedge limits the benefit to EURO of rising gold prices in the immediate
future and we are considering the alternative approaches to this with a goal
of an immediate partial offset of 10,000 ounces. Ideally, we would want to be
fully de-hedged by end 2008. However, there are associated accounting and
credit issues that must be considered carefully."
EURO is a French company, presently focused on acquiring and holding
mineral royalties and similar interests on operating gold mines. Additionally,
EURO continues to hold certain exploration and development mineral rights,
principally gold, in French Guiana, which are the subject of joint venture
EURO has approximately 60.6 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 reduction of its gold hedging position and documentation of its
transactions with Golden Star Resources Ltd. 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 to:
James H. Dunnett, Susanne A. Hermans
Directeur-General Vice-President Finance
Tel: +1-604-710-2242 Tel: +1-303-204-7771
Email: email@example.com Email: firstname.lastname@example.org
For further information:
For further information: EURO Ressources S.A. James H. Dunnett,
+1-604-710-2242 Directeur-General email@example.com or Susanne A. Hermans,
+1-303-204-7771 Vice-President Finance firstname.lastname@example.org