European Goldfields secures $600 million loan from Qatar Holding

By Lisa Kerner

Charlotte, N.C., Oct. 3 - European Goldfields Ltd. agreed to the terms of a $600 million seven-year senior secured loan facility with Qatar Holding LLC.

The interest rate on the loan will be six-month Libor plus 700 basis points.

The loan will be repayable in eight equal installments beginning in 2015.

European Goldfields is securing the loan with its Greek assets and will use the facility primarily for the development of its Skouries and Olympias gold projects in Greece.

The facility includes equity participation in the form of warrants issued to Qatar Holding for the purchase of European Goldfields shares, a company news release said.

The company said it also plans to offer unsecured loan notes with warrants for $150 million to existing shareholders on the same economic terms as the loan facility, for total proceeds of $750 million to fully fund its entire project portfolio.

The financings will "provide all of the development capital required to bring the group's entire project portfolio into production and allow us to accelerate the development of all our projects," executive chairman and president Martyn Konig said in a news release.

European Goldfields is a resource company based in London.

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