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Eurasia Gold to sell shares in London next month

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Matt55   Monday, 02/26/07 10:13:40 AM
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Eurasia Gold to sell shares in London next month

26 Feb 2007

Eurasia Gold Inc., a Kazakh-based gold miner part-owned by billionaire
Viktor Vekselberg, plans to sell shares in London next month to raise
as much as $150 million (€114 million) for acquisitions in central Asia.

The company, already listed in Toronto, will sell new
dollar-denominated shares, while existing shareholders the Mukashev
family will offer part of their stake to banks managing the sale, said
Tim Read, chairman of Eurasia Gold Inc. Nomura International and
Uralsib Financial Corp. will manage the sale. „We're going from a
Kazakh miner to a central Asia-wide approach,” Read said by telephone
from London.

„We'll end up as a $450 million to $500 million (€381 million)
company, fully cashed up to develop new assets.” Eurasia plans to
increase its output from 66,000 ounces of gold last year to 350,000
ounces of gold equivalent by 2010 by buying a gold-copper project in
Kyrgyzstan and a silver project in Tajikistan. The company's output
will be two-thirds gold and the rest mainly copper, Read said.

The projects are owned by the Eurasia Gold founder Kumar Mukashev and
his family, who hold a controlling 54% stake in the Toronto-based
company. Vekselberg holds about 24% through his Renova investment
vehicle, and that will drop to 12% after the London sale, Read said.
„He's not cashing out,” Read said, adding that the Russian billionaire
signed a so-called lock-in agreement not to sell his Eurasia shares.

The Mukashev family's stake will stay at „just over 50%” since it owns
the Kyrgyz and the Tajik projects being acquired by Eurasia, Read
said. The family will not be voting on the related party transaction
when it is set for approval before Eurasia's shareholders this month,
he said. Eurasia will offer shares to investors in Europe and the US
About $50 million from the sale will be invested in each of the new
projects, the Bozymchak deposit in Kyrgyzstan and the Akjilga mine in
Tajikistan, Read said. (Bloomberg)


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