Brazauro and Eldorado to partner on the TZ project

Eldorado Gold Corporation, a gold producing, exploration and development company actively growing businesses in Brazil, Turkey, China, Greece and the surrounding regions, is set to acquire a stake in Brazauro Resources Corporation’s (BZO) 43,000 hectare Tocantinzinho Project (TZ Project) in the Tapajos District of Para State, Brazil.

Under the deal, Eldorado will explore TZ Project with its exploration and project development expertise in Brazil.

Eldorado is likely to pay $90 million plus a production decision fee of up to $10 million to Brazauro for a 75% interest in the TZ Project by undertaking $9.5 million of exploration and development expenditures.

Eldorado will subscribe for 8,800,000 units of Brazauro at a price of $0.95 per unit. Each unit is comprised of one common share of Brazauro and one warrant.

Each warrant will entitle the holder to acquire one half of one common share of Brazauro at a price of $1.30 per share for a period of 18 months.