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.
Etruscan Resources Inc. has reported its financial and operating results for the nine months ended August 31, 2009. Highlights include a 36% increase in third quarter gold production from the Youga Gold Mine located in Burkina Faso with 17,747 ounces poured. Samira Hill Gold Mine ownership interest was sold for US$3 million. Gold resources at the Finkolo Gold Project in Mali upgraded with 610,000 ounces now classified as measured and indicated and 220,000 ounces as inferred. Etruscan’s consolidated net income for the third quarter of 2009 was $1.4 million ($0.01 per share) compared to a net income of $2.1 million ($0.02 per share) for the third quarter of 2008. The third quarter 2009 income includes a gain on the financial derivative instrument of $4.6 million. The third quarter 2008 net income included a gain of $9 million on the financial derivative instrument. Gold revenues for the third quarter of 2009 were $17.7 million or US$943 per ounce of gold sold. The non-cash revenue adjustment related to the financial derivative for this period aggregated $4.5 million (US$241 per ounce) for net cash revenue received of $13.2 million (US$702 per ounce).
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