Business
Share Subscription Agreement with Eldorado Gold...
Share Subscription Agreement with Eldorado Gold....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\n\n SERABI MINING plc\n (\"Serabi\" or \"the Company\")\n\n SHARE SUBSCRIPTION AGREEMENT WITH ELDORADO GOLD CORPORATION RAISING GROSS\n PROCEEDS OF £3,600,000 aT 3.0 PENCE PER Ordinary SHARE\n\nThe Board of Serabi is pleased to announce that it has entered into a\nconditional share subscription agreement (the \"Subscription Agreement\") with\nEldorado Gold Corporation (\"Eldorado\" TSX:ELD, NYSE:EGO, ASX:EAU) a\nCanadian-based gold producer with existing interests and operations in Turkey,\nChina, Brazil and Greece.\n\nUnder the terms of the Subscription Agreement, Serabi has agreed to issue to\nEldorado 120,000,000 new Ordinary Shares of 0.5 pence each in the Company (the\n\"Subscription Shares\") at a price per Ordinary Share of 3.0 pence. Following the\nsubscription, Eldorado will hold 26.8 per cent. of the entire issued share\ncapital of the Company and the Company will have a total of 447,740,595 Ordinary\nShares in issue. Eldorado has agreed not to dispose of these Ordinary Shares for\na 12 months period following their admission to trading.\n\nThe Company has also agreed that provided Eldorado continues to own 15 per cent.\nor more of the issued share capital of the Company, Eldorado will have the right\nto nominate a Director to the Board of the Company.\n\nCompletion of the Subscription Agreement is due to take place on 17 June 2010\nand is conditional upon the Subscription Shares being admitted to AIM.\n\nThe Company has granted Eldorado warrants exercisable at any time for a period\nof 2 years over a further 15 million new Ordinary Shares exercisable at 4.0\npence per new Ordinary Share.\n\nThe Company has also granted an option entitling Eldorado to subscribe for such\nnumber of new Ordinary Shares as would enable Eldorado to maintain its\npercentage interest in the share capital of the Company in the event that the\nCompany issues new Ordinary Shares for cash (or cash equivalent), provided that\nEldorado continues to own 15 per cent. or more of the issued share capital of\nthe Company.\n\nMike Hodgson, the Chief Executive of Serabi, commenting on the announcement\nsaid: \"The subscription by a strategic investor of the stature of Eldorado is an\nendorsement of what we are seeking to achieve and the strategy to focus on\nexploration that we are pursuing. This subscription taken together with\nEldorado's pr...