Eastern Goldfields, Inc. Completes Successful Transition from Open Cast to Underground Production and Raises $1.72 Million
San Diego, March 9, 2009 (OTC: EGDD) Eastern Goldfields, Inc. (�EGI�) is pleased to announce the following:
Underground Production
EGI has successfully completed the transition from its open pit operations to production from the underground section of the Lily Mine in the Mpumalanga Province of South Africa. Open pit operations were terminated in December, 2008.
Refurbishment of the recently acquired Barbrook processing plant continues and, once completed, the Company intends that it will substitute the existing Makonjwaan plant for the treatment of the Lily Mine�s ore at a projected level that may double the current processing capacity.
Private Placement
On February 16, 2009, EGI successfully raised approximately $1.72 million by means of a private placement of 574.229 shares of the Company�s Common Stock and 574,229 Common Stock Purchase Warrants in the form of a unit security at $3.00 per unit. After this private placement the number of issued and outstanding shares of the Company�s Common Stock increased to 10,252,215. Furthermore, if circumstances and market conditions allow, the Company has plans to raise up to $15 million in additional capital for recapitalization and expansion of the Lily Mine program. If the Company is successful in these efforts, the Company is hopeful that this additional funding may be completed on or about April 2009.
About EGI: EGI is a growing company engaged in the mining, exploration and acquisition of gold properties in some of Southern Africa's most prospective regions. The company holds mineral rights over 41,200 acres (16,673 ha), currently has mineral resources in excess of 4.4 million ounces and mineral reserves of 545,000 oz.
This press release contains 'forward-looking statements'. These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management wishes to caution the reader that these forward-looking statements, including, but not limited to, statements regarding the Company's plans, goals, the Company�s projections regarding the sufficiency of its working capital, plans to raise $15 million in additional capital, and, the busin ess strategy of the Company and other matters that are not historical facts are only predictions. No assurances can be given that such predictions and the estimates regarding mineral reserves, success of mining plans, or other projections will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events.
SOURCE Eastern Goldfields, Inc.
Renmark Financial Communications Inc.
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Dan Symons : dsymons@renmarkfinancial.com
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