Centerra Gold linked to bid talks with European Goldfields

David Hellier
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ADVISERS to European Goldfields remained silent yesterday after reports suggested that Canadian-listed Centerra Gold, had made an approach for the company.

“There have been no formal offers for the group,” an adviser said.

Last week European Goldfields, which owns the rights to three sites in northern Greece, revealed to the London Stock Exchange that it had received more than one early stage approach.

The group, listed in both Toronto and London, is said to be worth around £1.4bn. Lazard is advising it on talks with interested parties.

The sovereign wealth fund of Qatar will play an important role in the future of the group, having agreed in October to take a 30 per cent shareholding while lending $750m to develop the Greek mines. That transaction is still subject to a shareholder vote on December 22.

Eldorado, another Canadian group, is also believed to have made a preliminary approach.

Companies that are mining for gold or that have reserves of the precious metal are in hot demand currently as the price of gold soars ever higher.