European Goldfields eyes $13.5 million

European Goldfields (EGU-V) has reached a deal with Dundee Securities and Sprott Securities to complete a best efforts brokered private placement of up to 3 million units at $4.50 apiece for gross of $13.5 million.

One unit comprises one share plus a share purchase warrant. Each warrant is exercisable for one share at $5.50 for one year after closing.

For their efforts, Dundee and Sprott will receive a cash commission of 6% of the gross proceeds of the offering and up to 180,000 brokers’ warrants. Each brokers’ warrant is exercisable for one share at $4.50 for a year. The company plans to use the proceeds to fund exploration on its Romanian projects — Certej, Zlatna, Bolcana and Baita-Craciunesti.