EUG Eurogold

RNS Number:2652O
Eurogold Limited
19 February 2008



                                      

                                    EUROGOLD

                                 L I M I T E D

                               (ACN 009 070 384)





19 February 2008                                          ASX & AIM Symbol "EUG"


                    Settlement of Federal Court Proceedings

                               against Oxus Gold



Eurogold Limited ("Eurogold") and its wholly owned subsidiary Eurogold Holdings
(Bermuda) Limited ("EHBL") has agreed with Oxus Holdings (Malta) Limited
("OHML")and Oxus Gold Plc ("Oxus") to settle the proceedings commenced in 2006
by Eurogold and EHBL.


As previously announced Eurogold and EHBL commenced proceedings against Oxus and
OHML for damages arising from the termination by OHML and Oxus of the Asset Sale
Agreement entered into on 30 April 2006 for the sale of Eurogold's Ukrainian
gold assets.


Without accepting any liability Oxus has agreed to settle the dispute and pay
Eurogold A$7,950,000 made up of cash of approximately A$6,780,000 and Oxus
shares to the value of approximately A$1,170,000.


Of the cash component A$5,060,000 is payable on or before 31 March 2008 and the
balance of A$1.72 million by 6 May 2008.


IMF Australia (Limited)

On 22 December 2006 Eurogold entered into an agreement with IMF (Australia)
Limited ("IMF") under which IMF funded the Australian Federal Court proceeding
against Oxus. Under the terms of the agreement IMF are entitled to receive 30%
of the total proceedings received from the settlement.


Resource Invest LLC

In July 2007 Eurogold disposed of its Ukrainian gold mining assets to Resource
Invest LLC ("RIL") for US$5 million. US$2 million has been received and the
balance of US$3 million is due from RIL upon a regulatory milestone relating to
the advancement of the Saulyak Gold Project being met.


Upon receipt of the US$3,000,000 from RIL, settlement with Oxus and after
payment to IMF, the Company's cash position will be approximately A$10,000,000.
The Company's combined cash and Oxus share holding value will be approximately
3.5 cents per share (based on today's price of Oxus shares).


The Directors' continue to pursue new investment opportunities.



Peter Gunzburg

Chairman



For further information, please contact:


Peter Gunzburg - Managing Director - Ph: +61 8 9481 0572, Email:
peter@eurogold.com.au.


RFC Corporate Finance Ltd acts as Eurogold's Nominated Adviser

Contact: Stuart Laing - Ph: +61 8 9480 2506, Email: stuartl@rfc.com.au.



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

END
MSCBKLBFVLBFBBV

Eurogold (LSE:EUG)
Historical Stock Chart
From Apr 2024 to May 2024

Eurogold (LSE:EUG)
Historical Stock Chart
From May 2023 to May 2024