Bloomberg News

European Goldfields Gains After Report of Centerra Approach

December 13, 2011

(Updates with closing share price in second paragraph.)

Dec. 12 (Bloomberg) -- European Goldfields Ltd., a metals explorer and mine developer with projects in Greece, Romania and Turkey, reached the highest price in five months after Centerra Gold Inc. reportedly expressed interest in the company.

European Goldfields rose 4.4 percent to C$13.43 at the close in Toronto, the highest price since July 8, after the London-based Sunday Times reported yesterday that Centerra made an approach to the company. Centerra’s interest came after Vancouver-based Eldorado Gold Corp. made a preliminary approach, the newspaper reported, citing unidentified sources.

European Goldfields said in a Dec. 6 statement that it received “preliminary and indicative approaches from third parties” regarding potential deals. No formal offers had been received, the Whitehorse, Yukon-based company said, without identifying the third parties.

Gold miners including the biggest producer, Barrick Gold Corp., and fellow Canadian Iamgold Corp. are seeking acquisitions to increase production amid record prices for the precious metal. Gold rose to a record of $1,923.70 an ounce in New York on Sept. 6.

Centerra, which has gold operations in Kyrgyzstan and Mongolia, said in June 2010 it may spend as much as C$3 billion ($2.92 billion) buying assets to boost production. John Pearson, a spokesman for Toronto-based Centerra, said yesterday the company doesn’t comment on market speculation.

--Editors: Simon Casey, Tina Davis

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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