European Goldfields To Get $125 Mln Loan for Romanian Certej Project – Dow Jones

"We've put the banks under a lot of pressure to make sure [the funding] is on our terms," Dow Jones quoted European Goldfields Executive Chairman Martyn Konig as saying. Konig indicated that the company didn't plan to hedge any gold production as part of the final finance package.

European Goldfields expects to announce the project finance package before the end of 2009 and to finalize the deal in the first quarter of 2010.

Certej, which still requires final government approval, is expected to cost about $190 million to commission. The company will fund the remainder of the project using existing cash or possibly through a EU grant or the issue of equity, Konig said.

Certej, which is due to start production toward the end of 2011, is on track to be the first of three projects out of the gate for the AIM- and Toronto-listed miner, Dow Jones reported.

In Romania, the Canadian company holds four mineral properties located within the Golden Quadrilateral area.

European Goldfields (www.egoldfields.com) is also involved in the acquisition, exploration and development of other mineral properties in the Balkans.

($ = 0.6636 euro)