Eurogold Share Discussion Threads

[p@] 25/8/2006 11:10

Part of the oxus RNS released yesterday.

A number of significant matters had become apparent, including, but not
limited to, the fact that the approved C1/C2 reserve ounces for the Saulyak
deposit are significantly lower than the 578,000 oz figure that Oxus understood
to be the approved amount, Oxus added.
Oxus said it firmly believes that Eurogold's claim is without merit.

[giant steps] 25/8/2006 10:30

Prices bid 1.5p offer 2p, volume @ 10:30 NIL

[giant steps] 23/8/2006 11:15

Yes very true zaphod99, may explain decline

[zaphod99] 23/8/2006 11:07

The legal action would appear to be Eurogold's last throw of the dice given their precarious cash position. If Oxus end up winning the legal case (assuming it reaches court) their acquisition of the EUG interests could still go ahead but at a much reduced price.

[giant steps] 23/8/2006 09:41

Prices bid 1.5p offer 2.25p, volume @ 09:40 NIL

Wonder if OXS will 'temporarily' reduce their holding in EUG to signal
their dissatisfaction with investment case, given pending contract claims

[giant steps] 18/8/2006 13:45

Thanks for that Cezary - fresh start required, i agree

[cezary] 17/8/2006 17:27

Maybe so, but I was trying to remove the stigma of the association with oxus from other thread.

[michaelg1] 17/8/2006 16:06

GGG a better punt?

[cezary] 17/8/2006 15:47

GS...time to start another thread......

Eug after ????

[giant steps] 17/8/2006 13:33

The title of this thread seems most appropriate, oh dear

Prices bid 2p offer 2.5p, volume 20K / 1 trade

[giant steps] 26/7/2006 10:02

26 July 2006, Minesite



Extract
"
The thinking runs like this. Oxus's first offer for Eurogold was a paper deal, but the second time round, with gold frothing at over US$700/oz, Oxus thought that offering cash was a better option. Now, with gold back under US$650 Oxus has less money coming in than might have been anticipated earlier in the year, and things have got very tight. Oxus has other troubles to contend with – it's still battling for control of Jerooy, and one of its' operatives was shot and injured in Kyrgyzstan recently, apparently in a lovers' tiff.
"

[cezary] 17/7/2006 08:14

Er Zaphod.....I dont think that is true, as Oxus would have done their own due diligence and explored all avenues in light of 1st buy well before final signing

[zaphod99] 13/7/2006 16:57

There was conflicting data from two different bodies which perhaps only came to light when Oxus were given access to all the relevant documentation by the Ukrainians near the time of the completion of the deal.

[phillis] 13/7/2006 15:40

Why didn,t they come across this "anomaly" the first time round?

[cezary] 12/7/2006 16:34

Cant understand Oxus in that if they didnt agree with the reserves 1 day after the initial agreement,why did they wait so long to pull out of the final agreement!

[zaphod99] 11/7/2006 11:25

Eurogold Limited - Company Update


RNS Number:0018G
Eurogold Limited
11 July 2006


EUROGOLD

L I M I T E D

(ACN 009 070 384)


11 July 2006 ASX & AIM Symbol 'EUG'


Termination of Agreement with Oxus Gold plc


On 3 July 2006 Eurogold Limited ('Eurogold' or the 'Company') announced that Oxus Gold plc ('Oxus') had on 29 June 2006 terminated the Asset Sale Agreement between Eurogold and Oxus ('Asset Sale Agreement').


Eurogold has not been able to resolve the matter with Oxus and as a consequence Eurogold will now seek to raise up to A$2 million via a placement to fund working capital, pursue its rights against Oxus and protect its position generally.


Project Update


Eurogold's underground drilling programme at the Saulyak Project in the Ukraine has been the main focus of activities for the last 6 months. This programme is being undertaken to:

1. confirm and improve the understanding of the mineralisation and
geological controls for the upper levels of the Saulyak deposit (ie where access from existing underground development workings is available);

2. to help facilitate certification of Saulyak's existing C1 and C2
category ore reserves (under the Soviet resource classification system) by the relevant Ukrainian authorities; and

3. to enable a JORC Code compliant Mineral Resource for the Saulyak
deposit to be estimated.


Results from a total of 70 holes have now been received for a total of 1,671 metres. The drilling has been conducted from the existing 468 and 498 levels of underground development workings into both Orebodies 1 (lower lode) and 2 (upper
lode) at sections approximately 20m apart.


Mineralised intersections from 52 drillholes (including those previously reported in Eurogold's December 2005 and March 2006 quarterly reports) are shown in the table below. The other 18 drillholes were targeted at providing valuable geological structure information.


The results have confirmed the tenor and width of the Saulyak mineralisation and are expected to enhance the results of the resource modelling exercise currently being undertaken. Of particular interest are the encouraging results from the deepest intersections (drillholes 884, 888, 893 and 894) into Orebody 2. Further drilling is planned in the current quarter to test the mineralisation immediately downdip of these drillholes.


+-----------+----------+---------+--------+---------+
| Drillhole | From | To |Interval| Gold |
+-----------+----------+---------+--------+---------+
| £ | (m) | (m) | (m) | g/t |
+-----------+----------+---------+--------+---------+
| 581 | 9.40 | 11.00 | 1.60 | 4.20 |
+-----------+----------+---------+--------+---------+
| 583 | 10.47 | 15.45 | 4.98 | 3.59 |
+-----------+----------+---------+--------+---------+
| 583A | 7.22 | 14.30 | 7.08 | 5.58 |
+-----------+----------+---------+--------+---------+
| 584 | 5.58 | 14.40 | 8.82 | 7.88 |
+-----------+----------+---------+--------+---------+
| 585 | 13.60 | 15.85 | 2.25 | 3.54 |
+-----------+----------+---------+--------+---------+
| 586 | 14.93 | 19.68 | 4.75 | 2.28 |
+-----------+----------+---------+--------+---------+
| 592 | 0.50 | 4.76 | 4.26 | 10.17 |
+-----------+----------+---------+--------+---------+
| 608 | 15.37 | 17.39 | 2.02 | 10.05 |
+-----------+----------+---------+--------+---------+
| 612 | 4.45 | 10.70 | 6.25 | 4.20 |
+-----------+----------+---------+--------+---------+
| 613 | 4.51 | 5.26 | 0.75 | 1.06 |
+-----------+----------+---------+--------+---------+
| 615 | 0.00 | 5.19 | 5.19 | 1.28 |
+-----------+----------+---------+--------+---------+
| 616 | 4.77 | 7.26 | 2.49 | 4.01 |
+-----------+----------+---------+--------+---------+
| 619 | 4.57 | 5.14 | 0.57 | 3.83 |
+-----------+----------+---------+--------+---------+
| 734 | 5.62 | 7.40 | 1.78 | 1.92 |
+-----------+----------+---------+--------+---------+
| 736 | 2.58 | 4.65 | 2.07 | 5.71 |
+-----------+----------+---------+--------+---------+
| 738 | 5.25 | 6.87 | 1.62 | 6.59 |
+-----------+----------+---------+--------+---------+
| 767 | 4.21 | 13.26 | 9.05 | 4.80 |
+-----------+----------+---------+--------+---------+
| 847 | 8.43 | 11.52 | 3.09 | 2.23 |
+-----------+----------+---------+--------+---------+
| 848 | 23.93 | 26.00 | 2.07 | 2.85 |
+-----------+----------+---------+--------+---------+
| 849 | 11.05 | 15.15 | 4.10 | 3.22 |
+-----------+----------+---------+--------+---------+
| 850 | 9.61 | 11.65 | 2.04 | 3.34 |
+-----------+----------+---------+--------+---------+
| 851 | 5.66 | 12.33 | 6.67 | 5.05 |
+-----------+----------+---------+--------+---------+
| 852 | 3.81 | 6.36 | 2.55 | 1.43 |
+-----------+----------+---------+--------+---------+
| 853 | 14.50 | 16.11 | 1.61 | 2.11 |
+-----------+----------+---------+--------+---------+
| 854 | 2.32 | 3.27 | 0.95 | 2.10 |
+-----------+----------+---------+--------+---------+
| 855 | 7.30 | 11.56 | 4.26 | 10.92 |
+-----------+----------+---------+--------+---------+
| 857 | 6.75 | 8.95 | 2.20 | 6.82 |
+-----------+----------+---------+--------+---------+
| 858 | 7.36 | 9.61 | 2.25 | 3.77 |
+-----------+----------+---------+--------+---------+
| 859 | 24.25 | 25.80 | 1.55 | 0.89 |
+-----------+----------+---------+--------+---------+
| 860 | 20.16 | 25.54 | 5.38 | 2.97 |
+-----------+----------+---------+--------+---------+
| 861 | 19.50 | 23.62 | 4.12 | 53.28 |
+-----------+----------+---------+--------+---------+
| 862 | 6.76 | 11.10 | 4.34 | 29.04 |
+-----------+----------+---------+--------+---------+
| 881 | 6.65 | 8.16 | 1.51 | 1.01 |
+-----------+----------+---------+--------+---------+
| 883 | 0.96 | 2.93 | 1.97 | 1.81 |
+-----------+----------+---------+--------+---------+
| 884 | 12.37 | 18.53 | 6.16 | 6.03 |
+-----------+----------+---------+--------+---------+
| 888 | 0.97 | 3.94 | 2.97 | 8.04 |
+-----------+----------+---------+--------+---------+
| 889 | 6.12 | 9.88 | 3.76 | 5.09 |
+-----------+----------+---------+--------+---------+
| 890 | 8.73 | 9.41 | 0.68 | 2.84 |
+-----------+----------+---------+--------+---------+
| 891 | 1.03 | 2.93 | 1.90 | 2.86 |
+-----------+----------+---------+--------+---------+
| 892 | 9.28 | 10.55 | 1.27 | 6.53 |
+-----------+----------+---------+--------+---------+
| 893 | 1.50 | 8.83 | 7.33 | 18.80 |
+-----------+----------+---------+--------+---------+
| 894 | 0.36 | 5.40 | 5.04 | 32.79 |
+-----------+----------+---------+--------+---------+
| 922 | 21.49 | 26.09 | 4.60 | 13.77 |
+-----------+----------+---------+--------+---------+
| 923 | 25.83 | 31.23 | 5.40 | 2.59 |
+-----------+----------+---------+--------+---------+
| 924 | 16.09 | 19.16 | 3.07 | 10.29 |
+-----------+----------+---------+--------+---------+
| 925 | 1.62 | 4.10 | 2.48 | 4.93 |
+-----------+----------+---------+--------+---------+
| 926 | 0.00 | 4.88 | 4.88 | 2.78 |
+-----------+----------+---------+--------+---------+

| 927 | 1.85 | 3.27 | 1.42 | 8.90 |
+-----------+----------+---------+--------+---------+
| 928 | 3.87 | 8.00 | 4.13 | 1.78 |
+-----------+----------+---------+--------+---------+
| 930 | 0.00 | 6.38 | 6.38 | 7.39 |
+-----------+----------+---------+--------+---------+
| 931 | 0.92 | 5.12 | 4.20 | 3.12 |
+-----------+----------+---------+--------+---------+
| 934 | 9.35 | 13.35 | 4.00 | 4.95 |
+-----------+----------+---------+--------+---------+
| | |AVERAGE | 3.74 | |
+-----------+----------+---------+--------+---------+


Placement


Under the Asset Sale Agreement, Eurogold was due to receive approximately A$22m on 30 June 2006. As this has not occurred the Company needs to raise additional funds to provide short term working capital whilst it considers its position and to enable it to continue its work programme in the Ukraine.


The placement will seek to raise up to A$2m by issuing up to 40,000,000 fully paid ordinary shares each at $0.05 with a free attaching option exercisable on or before 30 June 2009 at A$0.10 each ('Placement') for each share subscribed for.


Some Eurogold directors have indicated that they will participate in the Placement subject to receipt of the necessary shareholder and regulatory approval.


Other Interested Parties


Eurogold has commenced discussions with other parties who have expressed interest in the project with a view to a sale or joint venture arrangement that could help provide the necessary funding to advance the project and meet the relevant project expenditure commitments.


OXUS - Management Agreement


On 9 June 2006 Oxus signed a management agreement with Eurogold and advanced US$416,000 to Eurogold (against the proceeds from the Asset Sale Agreement) to maintain project expenditure commitments until the settlement date of 1 July 2006. Following termination, the advance and interest (at libor plus 3%) are at the election of Oxus to be repaid either by Oxus subscribing for additional shares or from funds raised from a placement specifically for the purpose of repaying the advance. Both alternatives require shareholder approval.


Funds raised from the Placement will not be used to repay the advance.


OXUS - Notice of Termination


Oxus alleges in its Notice of Termination, which was given to Eurogold one day prior to settlement, that there had been 'a material adverse change' to Eurogold's assets, namely that:


1) there was a discrepancy between the number of ounces (578,000) approved by the Regional Expedition of the Ukraine and the number of ounces approved by the Central Planning Committee in Kiev (364,000); and


2) Eurogold has sought an extension of the Saulyak licence in the Ukraine which 'appears to have been refused'.


As part of its AIM listing requirements, Eurogold commissioned a Competent Persons Report from RSG Global in July 2004. RSG Global's report referred to 578,000 ounces, stating that the reserves were '... calculated by the Geological Expedition and approved in September 2003'.


Eurogold, like most Western listed mining companies, has stated from the outset that its work programme was designed to both meet the expenditure commitments of the Ukrainian tenements and convert the Soviet categorised resources into a JORC category.


It does appear that there may be a difference of opinion between the Regional and Central Ukrainian authorities as to how certain ore blocks should be calculated and therefore classified. However, Eurogold contends that that, of itself, does not constitute 'a material adverse change' to the assets. To the contrary, Eurogold remains confident that the Central Planning Committee in Kiev will ultimately approve a C1/C2 ore 'reserve' broadly in line with the 580,000 oz estimate of the Regional Expedition. Furthermore, based on preliminary modelling, Eurogold believe that a similar sized resource is likely to be able to be estimated in accordance with the JORC Code.


As to the second point, Eurogold has not sought an extension of the Saulyak licence. The licence is not due for review until November 2007 and progress under approved work programmes is regularly reviewed by the authorities.
Eurogold is in the process of reconfirming the status of these commitments.


As outlined above, Eurogold is also now seeking other partners or sources of funding to enable it to meet these commitments.


Peter Gunzburg

Executive Chairman

Eurogold Limited


The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves (as those terms are defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' - the 'JORC Code') is based on information compiled by Mr Simon Pepper. Mr Pepper holds a MSc Mining Geology from Camborne School of Mines, is a member of the Institute of Materials, Minerals and Mining in the United Kingdom and has at least five years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking. Mr Pepper, who is a consultant to Eurogold Ltd, has reviewed this report and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.


The Saulyak deposit is located in Ukraine and most of the previous work was conducted by Soviet state organisations. As such, this report includes references to resources and reserves estimated in accordance with the Soviet classification system. As discussed in this report, Eurogold is currently working towards the conversion of these into a JORC Code compliant Mineral Resource estimate.


This information is provided by RNS
The company news service from the London Stock Exchange

END

[cezary] 03/7/2006 09:09

Typical tactics from Bill Trew when he wants to take over a company.
I think he did the same with Oxus initially.

It seems trew is determined that EUG should go bankrupt first before oxus will part with any dosh.

[cezary] 29/6/2006 11:01

EUG shares suspended on ASX and AIM today!!!
Looks like OXS possibly doing the dirty on EUG a second time???

[cezary] 02/6/2006 11:22

Lets get one thing straight ...Oxus have only bought 2 licenses from Eurogold. EUG still have many licenses and the Tailings Processing plant.

[caiman27] 02/6/2006 11:15

I wasn't aware that there was any major dissent within EUG's shareholders, though I'd agree that it is a shame that EUG never really pushed Saulyak - it was always distracted by the problems with the Romanian plant. Fidelity did buy in on the back of Saulyak though and may have wanted to see more of the potential value become apparent.

As you say, Fidelity's position is interesting, to say the least. They may very well not be a supporter of the sale.

One other thing, as Eurogold is an Aussie company, any deals would be subject to ASX rules, not LSE.

[zaphod99] 02/6/2006 10:52

Fidelity's meeting with Oxus yesterday might well have involved discussions about Eurogold because Oxus's purchase of the Eurogold assets has still to be approved by the Eurogold shareholders.

Has Fidelity increased their stake in EUG so they have a bigger influence over the deal going ahead or not? Do they support Oxus's plans or are they against them?

[zaphod99] 02/6/2006 10:39

caiman27,

Agreed, I don't think anyone has suggested otherwise.

To sum up:
Oxus are buying most of Eurogold's assets
Fidelity have reduced their stake in Oxus
Fidelity called a meeting with Oxs
Fidelity have increased their stake in Eurogold

The question is, what is Fidelity up to? Perhaps Eurogold have a strategy to aquire assets soon. Can't see Fidelity increasing their stake for any other reason.

[caiman27] 02/6/2006 10:00

Eh? There's a fair bit of confusion here. Oxus has acquired most of the Eurogold assets. It no longer has an interest in Eurogold and so has no influence over it. Equally, Eurogold no longer has any significant assets apart from cash. If anyone wants to have a meeting about Eurogold they need to meet Peter Gunzburg.

[zaphod99] 02/6/2006 08:58

Interestingly Fidelity called a meeting with Oxus yesterday.

Perhaps they won't be a cash shell for very long.