European Goldfields secures loan for Greek projects


European Goldfields (EG) has entered into talks with Qatar Holdings for a $600m loan to develop its Skouries and Olympias gold projects in Greece.

Pursuant to the heads of terms, the facility will be structured as a $600m seven-year loan at an interest margin of 7% repayable in eight equal installments commencing in 2015.

Qatar Holding will also receive 40.44 million shares in EG, under the equity participation clause of the loan facility.

The firm has also proposed to offer unsecured loan notes with warrants for $150m to existing shareholders on the same economic terms as the facility.

European Goldfields executive chairman and president Martyn Konig said that the financing would provide all of the development capital required to bring the firm's entire project portfolio into production and allow it to accelerate the development of all its projects.