To fund exploration of its projects in Turkey and elsewhere,
National Bank Financial will place up to 9.5 million special warrants of Eldorado on a best-effort basis at 90 each. A warrant can be exercised without payment for one share and half a purchase warrant. Each whole purchase warrant enables the holder to acquire an additional share, within two years, for $1.10. The closing date is Feb. 1.
In return for acting as Eldorado’s agent, National Bank will receive a cash commission and the option to buy 5% of the special warrants issued.
In 1999, Eldorado produced 190,000 oz. at a cash cost of US$202 per oz. The company’s wholly owned mines are Sao Bento, an underground operation in Brazil, and La Colorada, an open pit in Mexico.
At the end of 1998, Sao Bento hosted proven and probable reserves of 743,800 oz. in 2.5 million tonnes grading 9.18 grams gold.
Eldorado’s wholly owned gold projects in Turkey are Efemcukuru and Kisladag. Efemcukuru contains a total resource of 2.5 million tonnes averaging 13.71 grams gold. Drilling at Kisladag has outlined a 3.4-million-oz. resource in a gold porphyry deposit containing 73.9 million tonnes of 1.43 grams gold.
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