European Goldfields closes $4.7 million placement

European Goldfields (EGU-V) has completed a previously announced non-brokered private placement of 1.5 million shares at $3.10 apiece.

The company intends to use the $4.65 million in gross proceeds to fund exploration on its Certej (3,164-ha), Zlatna, Bolcana and Baita-Craciunesti projects in Romania.

The company was formed in June of 2000, under a plan of arrangement with Gabriel Resources (GBU-T), which transferred rights to the projects. Gabriel shareholders received one European Goldfields share for every Gabriel share held.

All shares issued under the placement are subject to a four-month hold period and cannot be traded until April 22, 2002.