Big boost from Qatar

Article Excerpt

EUROPEAN GOLDFIELDS $9.97 (Toronto symbol EGU; TSINetwork Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 183.8 million; Market cap: $1.8 billion; No dividends paid) has attracted a number of investments from Qatar Holdings LLC, a division of Qatar’s sovereign wealth fund, to develop its mines. Qatar Holdings has given European Goldfields a seven-year, $600 million U.S. loan. In addition, Qatar Holdings is buying a 9.9% stake in European Goldfields from Greek building firm Aktor Construction. European Goldfields will also issue warrants to Qatar Holdings that give it the option to increase its stake to about 29%. If it exercises these warrants, European Goldfields would get an additional $366.8 million. Aside from funding, these investments give the company a major partner with a stake in the development of its mines. European Goldfields is still a buy. buy…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.