Serabi Mining Enters Share Subscription Pact With Eldorado Gold

16th Jun 2010 07:50

LONDON (Dow Jones)--Serabi Mining PLC (SRB.LN), a resources company, said Wednesday it has entered into a conditional share subscription agreement with Eldorado Gold Corporation (ELD.LN) a Canadian-based gold producer with existing interests and operations in Turkey, China, Brazil and Greece. MAIN FACTS: -Serabi has agreed to issue to Eldorado 120 million new ordinary shares of 0.5 pence each in the Company at a price per ordinary share of 3.0 pence. -Eldorado will hold 26.8% of the entire issued share capital of the Company and the Company will have a total of 447.74 million ordinary shares in issue. -Eldorado has agreed not to dispose of these Ordinary Shares for a 12 months period following their admission to trading. -Proceeds from the subscription agreement will enable the Company to extend its current exploration programs at Palito and support further IP surveys over the remaining VTEM targets. -The results from the initial survey have served to strengthen the belief that it will discover additional satellite ore bodies around Palito. -Shares closed at 1.15 pence Tuesday. -By Elliott Ball, Dow Jones Newswires; 44-20-7842-9314; [email protected] (END) Dow Jones Newswires June 16, 2010 02:50 ET (06:50 GMT)