Etruscan Resources reported that monthly production from its Youga Gold Mine located in Burkina Faso, West Africa was 6,237 ounces from 79,244 tones of ore processed in the month of October. This is the fourth consecutive month in a row that the Youga Mine has exceeded 6,000 ounces of gold, having produced 6,093 ounces in July, 6,536 ounces in August and 6,600 ounces in September.
Etruscan Resources announced that it has completed the cash settlement on 62,241 ounces of the gold hedge commitments for the Youga Gold Mine in Burkina Faso, leaving less than 20% of the current life-of-mine production hedged.
Etruscan Resources Inc. announced today that it has completed the previously announced private placement with Endeavour
Financial Corporation of US$43,000,000 of common shares at a price of C$0.30 per common share. The private placement was part of a comprehensive financial re-engineering undertaken by Etruscan which included a substantial restructuring of Etruscan’s debt facilities. US$23 million of the Endeavour private placement proceeds are being used to repurchase approximately 42% of Etruscan’s $700 per ounce gold call options resulting in less than 20% of the current life-of-mine production being hedged. Approximately US$8.5 million of the proceeds have been used to repay outstanding unsecured convertible debt. Of the remaining US$11.5 million, US$5 million has been allocated for working capital purposes and improvements at the Youga Gold Project and the balance of approximately US$6.5 million will be used for Etruscan’s general corporate working capital requirements.
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