Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 7, 2011

Article Excerpt

EUROPEAN GOLDFIELDS, $9.65, symbol EGU on Toronto, 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, and has an option to buy another 5.3%. European Goldfields will also issue 40.4 million warrants to Qatar Holdings at an exercise price of $9.08 a share. If Qatar Holdings exercises the warrants, it could increase its stake in European Goldfields to about 29%. It would also give European Goldfields an additional $366.8 million in development funding. The Qatar Holdings investments will fully finance the development of the European Goldfields’ Skouries and Olympias gold projects in Greece and its Certej project in Romania. These mines should let the company produce around 400,000 ounces of gold a year by 2014. The investments also give European Goldfields a..