EURO Ressources S.A.

EURO Ressources S.A.

September 06, 2005 09:32 ET

EURO Ressources S.A. Announces Additional US$3 MM Credit Facility with Macquarie Bank Limited

PARIS--(CCNMatthews - Sep 6, 2005) -

EURO Ressources S.A. (TSX:EUR) (Euronext of the Bourse de Paris:EUR) today announced that it has completed a US$3 million increase to its existing loan facility with Macquarie Bank Limited.

The facility increase of US$3 million is in addition to the existing US$6 million facility provided by Macquarie Bank in December, 2004. The proceeds of the amended facility will be paid to Golden Star Resources Ltd. as further payment of the initial US$12 million purchase price of the Gross Rosebel royalty, which EURO acquired from Golden Star effective December 31, 2004. EURO previously paid US$6 million of the purchase price to Golden Star.

Golden Star has agreed to amend the terms for payment of the purchase price of the Gross Rosebel royalty to provide that no interest is payable on the instalment now to be paid. Additionally, the final US$3 million instalment of the purchase price is to be payable on or before December 31, 2005, bearing interest at an annual rate of 6% until that date and at an annual rate of 12% thereafter. Previously, interest at an annual rate of 12% was to apply to outstanding amounts of the purchase price from 30 June, 2005.

The proceeds of the additional facility are to be repaid to Macquarie Bank in five quarterly instalments of US$600,000 commencing October 31, 2007. The additional facility bears interest at LIBOR plus 2.5% and an arrangement fee of 1.5% of the increase in principal amount.

In connection with the amended facility, EURO has entered into certain gold hedging arrangements with Macquarie. Under these hedging arrangements, EURO has entered into forward sales contracts for a total of 57,000 ounces of gold at a price of US$458.50 per ounce to be settled in ten equal quarterly amounts of 5,700 ounces commencing in October, 2007.

EURO Ressources S.A. is a French company, presently focused on acquiring and holding mineral royalties on operating gold mines. Additionally, EURO continues to hold certain exploration and development mineral rights, principally gold, in French Guiana, which are subject to joint venture arrangements. EURO has approximately 45 million shares outstanding.

Additional information relating to EURO Ressources S.A. is available on SEDAR at Further requests for information should be addressed to:

James H. Dunnett, Allan J. Marter
Directeur-General President
Tel: 604-710-2242 Tel: 303-894-4631
Fax: 604-608-3283

Contact Information

  • EURO Ressources S.A.
    James H. Dunnett, 604-710-2242
    604-608-3283 (FAX)
    Allan J. Marter, 303-894-4631