EUG Eurogold

    RNS Number : 3765X
  Eurogold Limited
  24 June 2008
   

    

    EUROGOLD
    L I M I T E D
    (ACN 009 070 384)



    24 June 2008    ASX & AIM Symbol "EUG"


    NON-Renounceable Rights Issue, Share Consolidation and 
    Cancellation of AIM Listing

    *     Eurogold Limited ("Eurogold") is pleased to announce an underwritten non-renounceable rights issue (Rights Issue) of one new Share
for every one Share held to raise approximately $9.6 million before costs. 
    *     The funds raised from the Rights Issue will expand the range and size of investment opportunities that Eurogold can pursue.
    *     Eurogold also proposes to cancel its listing on the AIM market and to seek shareholder approval to consolidate its share capital
on a 10:1 basis. 

    Non-Renounceable Rights Issue
    Eurogold is pleased to announce a non-renounceable Rights Issue to raise a maximum of $9,590,385 before costs. The Rights Issue will
offer one new Share for every one Share held on the Record Date at an issue price of $0.03 per share.

    The Rights Issue is being fully underwritten by RFC Corporate Finance Ltd and sub-underwritten by Sun Hung Kai Investment Services Ltd
(subject to formal documentation).

    A prospectus for the Rights Issue, which will include a timetable of key dates, is currently being finalized and is expected to be
released to the market and despatched to shareholders during the next week.  An ASX Appendix 3B in relation to the rights issue is attached
to this announcement.

    Proposed Share Consolidation and General Meeting
    Eurogold also proposes to seek shareholder approval for a 10:1 consolidation of its share capital.  A general meeting of shareholders is
proposed to be held prior to the end of July 2008 for this purpose. A notice of meeting is expected to be released to the market and
despatched to shareholders during the next week.  The Rights Issue will be completed prior to the consolidation of capital taking effect.  

    At the same meeting, Eurogold intends to also seek shareholder approval for the issue of 3,500,000 Options exercisable at $1.00 (on a
post consolidation basis) with an expiry date of 30 June 2014 to shareholders who participated in a placement in July 2006 and the issue of
a further 500,000 of such Options to entities associated with Mr Peter Gunzburg in relation to the conversion of debts owed by the Company
to Mr Gunzburg in July 2006. Shareholders previously approved the issue of Options (on identical terms to the new Options other than for an
expiry date of 30 June 2009) in relation to both the July 2006 placement and the conversion of debts owed to Mr Gunzburg. However, for
various reasons such Options were not issued. Eurogold is required to seek shareholder approval again to grant the Options given the
extended expiry date and so that their issue does not affect its 15% placement capacity.



    Consolidated Share Capital and Funding Position
    After the proposed 10:1 share consolidation the Company will have approximately 64 million shares on issue and cash and listed
investments of approximately $15.7 million (equating to approximately 25 cents per share).

    The Company also has a contingent receivable of US$3 million (equating to approximately 5 cents per share) due from Resource Invest LLC
(RIL) when a regulatory milestone relating to the advancement of the Saulyak Gold Projectin the Ukraine, previously sold by Eurogold to RIL,
is met.

    Use of Funds and Future Investment Strategy
    In a general meeting of Shareholders held on 10 July 2007 and following the disposal of its projects, the Directors advised that the
Company would become a strategic investment company. As an investment company, Eurogold intends to actively pursue opportunities in the
resources sector by way of direct equity investments in companies with resource projects or directly into projects by way of ownership,
joint ventures or farm in arrangements.  

    To that end, the Company has previously announced that it has acquired a 19.89% interest in the ASX listed gold explorer, Golden Tiger
Mining NL. Golden Tiger has several gold exploration projects in Guangxi Province in southern China which have delivered some very
encouraging exploration results to date. 

    The additional funds raised from the rights issue will enable Eurogold to pursue an expanded range of investment opportunities and make
larger single investments than it could using its existing resources. 

    Cancellation of AIM Listing
    Eurogold is currently listed on both the ASX and on the AIM Market of the London Stock Exchange. However, as a result of selling its
previous main undertaking, the Saulyak gold project, Eurogold was due to be suspended from AIM on 10 July 2008 and would have had a further
6 months in which to complete a "reverse takeover" transaction or otherwise have its AIM listing cancelled.  

    Given this situation and the ongoing costs (of around $150,000 per annum) of maintaining the AIM listing, Eurogold has therefore sought
to cancel its AIM listing. The cancellation will take effect at 7am UK time on Thursday 24 July 2008 with the last day of trading of
Eurogold shares on AIM being on 23 July 2008.  In light of the cancellation on 24 July 2008 the AIM suspension on 10 July 2008 will now no
longer occur.

    All shareholdings held through Eurogold's UK share registry will be migrated to Eurogold's Australian share register (managed by
Computershare) immediately following the cancellation date. However, shareholders may elect to transfer their holding before such date if
they choose. A letter will be sent to holders on the UK share registry providing further details on this process.

    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 
 
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