Gulf investors offered shares in goldfield

DUBAI - Citigold Corporation, a dynamic gold production company currently developing a major high-grade project on Australia's richest goldfield in Queensland, is offering Gulf investors a unique opportunity to share in the growth of the company by subscribing to the issue of 37,500,000 unsecured convertible notes at the face value of $0.40 (Dh1) per note, earning 12 per cent interest. Manan Desai, Chief Operations Officer, Citigold, said: "Citigold is the first goldmine to set up an office in Dubai, to serve as a strategic springboard for international markets. This allows the region's booming trade to establish a direct contact with a goldmine.

By A Staff Reporter

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Published: Wed 28 Apr 2004, 9:57 AM

Last updated: Wed 1 Apr 2015, 11:53 PM

The convertible issue, which presents an opportunity to Gulf investors to put their money into a profitable venture, is another sign of Citigold's long-term commitment to the region." Citigold, which opened an office in Dubai's Gold and Diamond Park in September 2003 as part of its globalization drive, owns gold deposits in Australia. Mining is already underway and the target for the first year's output is 40,000 ounces of gold, which will be further expanded to 250,000 ounces per year in five years.

Desai, said: "The issue of convertible notes offers a 12 per cent yield, plus an extra 1 per cent linked to the rise in the Australian gold price. The notes are redeemable for full face value on March 29, 2007, and are tradable on the Australian Stock Exchange. The convertible issue of Citigold is an attractive investment opportunity, as the market capitalization per ounce of mineable gold is just $10, against $32 and $131 of two leading Australian goldmines respectively. The cash earnings are projected to be 13 cents per share when full production is reached in five years."

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