EURO RESSOURCES 
By EURO Ressources S.A. (TSX: EUR; Euronext of the Bourse de Paris: EUR) today announced that it has now received from BNP Securities, gross proceeds from the rights offering of €7,573,932, representing 100% subscription of the rights offered to existing shareholders. Following the rights issue, there are 60,591,460, common shares outstanding in EURO.
James H. Dunnett, Directeur-Général of EURO commented:?We are very pleased with the strong support from our shareholders and thank them for their confidence. It is gratifying that we have not needed to call upon the underwriting assistance from either Macquarie Bank or Golden Star and that the issue was fully subscribed by the broad majority of our shareholders.
?The proceeds of the issue will provide in excess of US$11 million. This is more than we had anticipated due to the favourable movement in the exchange rate between the US Dollar and the Euro and gives us added liquidity.
?At the same time, and at our request, we anticipate that Golden Star will now agree to a deferment until 2008, on favourable terms, of the payments otherwise due to them in regard to the Rosebel Royalty and their subordinated loan. If we are successful in these negotiations, the deferment will provide added liquidity to EURO and allow us to better reduce our gold hedge position. We expect we may repay our loan from Macquarie Bank as part of this re-arrangement of our finances. Discussions remain ongoing but are expected to conclude after the US Thanksgiving Holiday.?
About EURO
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 arrangements.
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 acquisition of other corporations and additional royalty or mineral interests 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,
Directeur-Général |
Susanne A. Hermans |
EURO Ressources S.A.
James H. Dunnett,
Directeur-Général
+1
604 710 2242
jhdunnett@aol.com
or
Susanne
A. Hermans
Vice-President Finance
+1 303 204 7771
shermans@euroressources.net
