Berma Gold Acquires EAGC Ventures

Vancouver-headquartered Bema Gold Corporation acquired all the outstanding shares in the capital of Washington-based EAGC Ventures Corp., by way of a plan of arrangement on February 14, 2003.

The completion of the merger resulted in Bema consolidating the production of EAGC’s Petrex gold mines in South Africa, more than doubling Bema’s projected annual production in 2003 to approximately 280,000 ounces of gold. Under the arrangement, Bema issued one Bema common share for each EAGC common share, assumed all outstanding options and other convertible securities of EAGC and assumed EAGC’s debt of US$40 million for a total transaction value of approximately $167 million. Prior to completing the arrangement, Bema disposed of its previous investment in special warrants of EAGC for approximately $27 million of gross proceeds.

Bema Gold was represented by Tookie Angus and Lynne Charbonneau of Fasken Martineau DuMoulin LLP in Vancouver, and Rod McKeen and Cyndi Laval of Gowling Lafleur Henderson LLP in Vancouver. EAGC Ventures was represented by John Anderson and Neville McClure of Stikeman Elliott LLP in Vancouver.

Lawyer(s)

Neville J. McClure Cyndi D. Laval John F. Anderson Rod C. McKeen R. Stuart (Tookie) Angus Lynne M. Charbonneau