/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S.
NEWSWIRES/
VANCOUVER, Nov. 14, 2016 /CNW/ - Euromax Resources Ltd
("Euromax" or the "Company") (TSX:EOX) (OTCQX:EOXFF) is pleased to
announce that it has filed and obtained a receipt for a preliminary
short form prospectus in connection with a marketed offering (the
"Offering") of units (each, a "Unit"). The Company expects to raise
aggregate gross proceeds of C$35
million pursuant to the Offering. The Offering will be
conducted through a syndicate of underwriters to be led by CIBC
Capital Markets and including National Bank Financial Inc., Scotia
Capital Inc., Echelon Wealth Partners Inc. and Peel Hunt LLP
(together, the "Underwriters").
Each Unit is comprised of one common share of the Company (each,
a "Common Share") and one common share purchase warrant of the
Company (each, a "Warrant"). Each Warrant will entitle the holder
thereof to purchase one Common Share at a price representing an
approximate 10% premium to the offering price for a period of 12
months from the closing of the Offering. The final pricing of the
Units, including the exercise price of the Warrants, and
determination of the total number of Units to be sold will be
determined in the context of the market at the time of entering
into an underwriting agreement for the Offering.
The Company intends to use the net proceeds of the Offering to
repay amounts owing under a gold purchase and sale agreement and
for project financing costs, costs relating to the engineering,
procurement and construction management contract, pre-construction
and permitting costs, all relating to the Company's Ilovica-Shtuka
project in Macedonia, and
corporate costs and working capital purposes.
The Company will grant the Underwriters an over-allotment option
(the "Over-Allotment Option") to purchase additional Units,
additional Common Shares or additional Warrants, representing in
the aggregate up to 15% of the number of Units sold in the
Offering. The Over-Allotment Option may be exercised in whole or in
part at any time for a period of up to 30 days following closing of
the Offering, to cover over-allotments, if any, and for market
stabilisation purposes.
The Units will be issued by way of a short form prospectus that
will be filed with securities regulatory authorities in all the
provinces of Canada except
Quebec. The Company has filed a preliminary short form
prospectus in respect of the Offering. The preliminary short
form prospectus is subject to completion or amendment. There will
not be any sale or any acceptance of an offer to buy securities
until a receipt for the final short form prospectus has been
issued. Before investing, prospective investors should read the
short form prospectus (including the documents incorporated therein
by reference) and other documents the Company has filed with the
applicable Canadian securities regulatory authorities for more
complete information about the Company and the Offering. The
Offering is made only by the prospectus.
The Offering is subject to certain customary conditions and
regulatory approvals and the entering into by the Company and the
Underwriters of an underwriting agreement. The Company has applied
to list the Common Shares and Warrants on the Toronto Stock
Exchange ("TSX"). Listing will be subject to the Company fulfilling
all the listing requirements of the TSX.
This press release does not constitute an offer of securities
for sale nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities being offered have not been, nor will they
be, registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), and such securities may not be
offered or sold within the United
States absent registration under the U.S. Securities Act or
any applicable exemption from the registration requirement
thereunder.
About Euromax Resources Ltd.
Euromax has a major development project in Macedonia and an exploration services company
in Bulgaria. We are focused on
building and operating the Ilovica-Shtuka copper/gold project in
Macedonia, as well profitably
deploying the wealth of exploration experience within our Bulgarian
Exploration Services subsidiary.
Forward-Looking Information
This news release contains forward-looking information, such
as statements relating to the expectation that applicable approvals
for the Offering will be obtained, the success of the Offering and
the intended use of the net proceeds of the Offering, among others.
Forward-looking information is frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate" and other similar words, or statements that certain
events or conditions "may" or "will" occur. Forward-looking
information is based on the opinions and estimates of management at
the dates the statements are made, and are subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements. The forward-looking statements
contained in this document are as of the date of this document, and
are subject to change after this date. Readers are cautioned that
the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements. Euromax disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S.
NEWSWIRES
SOURCE EurOmax Resources Ltd.