ELD closes out hedge book, uses profits to clean up balance sheet some. Also puts itself on the block. Good stuff.
"The Company has reduced its credit position with Rothschilds from US$35.0 million on December 31, 1998 to US$16.2 million on June 30, 2001. In addition, as of July 2, 2001, the Company closed out its gold hedging contracts maturing after December 31, 2001 and all Brazilian Real hedging contracts. The funds from the Hedge Contracts will be applied as prepayment of the ARCA reducing the Company's debt by a further US$1.2 million prior to year end. US$400,000 of the hedge liquidation will be available to the Company for working capital.
``To pursue the Company's goal of maximizing shareholder value, Eldorado's Board of Directors has resolved to seek a Corporate Transaction that may include, among other things, equity financing, asset sales and/or a merger with another entity. I am confident that the underlying value of our gold reserves and resources will form a secure base for sustaining our shareholders' interests,'' said Mr. Wright." |
