Eldorado takes shareholding in Amex to over 27%

Executive Summary

• Eldorado Gold Corp. acquired an additional 14,868,200 common shares of Amex Exploration Inc. for a total consideration of $59,472,800, increasing its ownership stake significantly.
• Following the acquisition, Eldorado’s beneficial ownership increased from approximately 16.77% to 27.27% of Amex’s outstanding common shares on a non-diluted basis.
• The transaction was executed pursuant to a private agreement with a third party for investment purposes, relying on the "private agreement exemption" under National Instrument 62-104.

Key Details

• Transaction Structure: Private agreement with a third party.
• Shares Acquired: 14,868,200 common shares of Amex Exploration Inc.
• Price Per Share: $4.00
• Total Consideration: $59,472,800
• Pre-Transaction Ownership:
  • 23,758,130 common shares
  • 207,000 common share purchase warrants
  • Approx. 16.77% of outstanding shares (non-diluted)
  • Approx. 16.89% of outstanding shares (partially diluted, assuming full warrant exercise)
• Post-Transaction Ownership:
  • 38,626,330 common shares
  • 207,000 common share purchase warrants
  • Approx. 27.27% of outstanding shares (non-diluted)
  • Approx. 27.37% of outstanding shares (partially diluted, assuming full warrant exercise)
• Purpose: Investment purposes in response to an unsolicited opportunity; no current plans for control or changes to Amex's business.
• Regulatory Basis: Relied on the "private agreement exemption" under Section 4.2 of National Instrument 62-104 (purchased from less than five persons, not offered generally, price not greater than 115% of market price).
• Future Intent: Eldorado may increase or decrease ownership subject to market conditions and other opportunities.

Notable Quotes

• "Eldorado's acquisition of additional shares is for investment purposes, in response to an unsolicited opportunity to increase its investment in Amex."