VANCOUVER, Sept. 25, 2017 /CNW/ - Euromax Resources
Ltd., (TSX: EOX; OTCQB: EOXFF): ("Euromax" or the
"Company"), is pleased to announce that it has entered into
subscription agreements to complete private placement transactions
(together, the "Transaction") which will result in Company's
receipt of aggregate gross proceeds of $7,900,000.
The Transaction will consist of two separate non-brokered
private placement offerings which will include:
- the issuance and sale of 14,666,667 units (the "Units")
consisting of (i) one Common Share and (ii) one Common Share
purchase warrant (each, a "Warrant") at an offering price of
$0.30 per Unit for aggregate gross
proceeds of $4,400,000. The Warrants
will each be exercisable for the purchase of one Common Share for a
period of three years following closing of the Transaction at a an
exercise price of $0.33 (the "Unit
Offering"); and
- the issuance and sale of 10,000,000 common shares in the
capital of the Company (the "Common Shares") at an offering
price of $0.35 per Common Share for
aggregate gross proceeds of $3,500,000 (the "Share Offering").
The first tranche of the Unit Offering consisting of 13,333,333
Units for gross proceeds of $4,000,000 closed today. The remaining portion of
the Unit Offering is expected to close on a future date to be
determined by the Company. Pursuant to the requirements of the
Toronto Stock Exchange (the "TSX"), the Company will seek
shareholder approval to complete the Share Offering, and closing of
that portion of the Transaction is expected to occur following
receipt of such approval. The Transaction has been conditionally
approved by the TSX, subject to receipt of customary post-closing
documentation.
The proceeds of the Transaction will be used to progress the
design and engineering for the the Company's Ilovica-Shutka
copper-gold project in Macedonia,
(the "Project"). The funds will be used to establish a
guaranteed maximum price for the construction of the Project so
that it can progress towards a final engineering, procurement and
construction contract.
Further to the Company's news release dated 23rd
February 2017, when the Company has
agreed a binding Memorandum of Understanding (the "MOU")
with Ausenco Engineering Canada Inc, ("Ausenco"),
Ausenco will proceed with further initial detailed
engineering and design and a two-step process to ultimately provide
the Company with a Lump Sum Turnkey Price for the construction of
the process plant and related infrastructure for the. The first
step is for Ausenco, on an open book basis, to provide the Company
with a Guaranteed Maximum Price ("GMP") based on an agreed
scope of work within 90 days of commencing the work to do so.
Following the delivery of the GMP, provided only that the GMP is at
or below the Company's Ilovica-Shtuka copper-gold Project capital
expenditure as per the Company's Feasibility Study Technical
Report, Ausenco would proceed with the second step in preparing and
negotiating with the Company a Lump Sum Turnkey EPC contract for
the development of the Ilovica-Shtuka Project, the substantial
terms of which are included in the MOU. Ausenco is expected to
commence its work in early October
2017.
The Common Shares issued pursuant to the Transaction, including
those issued upon the exercise of the Warrants, will be subject to
a hold period of four months and one day from the closing date of
the Transaction, in accordance with applicable Canadian securities
laws.
Commenting on the announcement, Martyn Konig, Executive Chairman stated:
"We are very excited to welcome two new shareholders to our
register as we progress to the next steps of engineering and
development of Ilovica-Shtuka. We look forward to building a
strong, long term relationship with Ausenco who will become a key
partner as we progress this critical phase of the
development. The combination of the stabilised political
situation and new government in Macedonia and the with the completion of these
next engineering steps puts us well on track towards the
construction of our Ilovica-Shtuka Project".
About Euromax Resources Ltd.
Euromax has a major
development project in Macedonia
were we are focused on building and operating the Ilovica-Shtuka
copper/gold project in Macedonia.
About Ausenco
Ausenco is a private, diversified,
engineering, construction and project management company, majority
owned by Resource Capital Funds ("RCF"), providing services
to the global resource and energy sectors. Ausenco's experience in
precious and base metal projects ranges from conceptual studies for
new project developments to execution with EPC or EPCM
delivery.
Ausenco has delivered a number of projects under Lump Sum
Turnkey contracts which provide cost, schedule and performance
certainty often required by financiers and investors. Ausenco
is currently completing the process plant and other support
infrastructure for a gold project in Nova
Scotia under a Lump Sum Turnkey contract and is often
pioneering the entry into new jurisdictions and/or innovative
technologies focused on the delivery of superior shareholder
returns.
Forward-Looking Information
This news release contains forward-looking information.
Forward-looking statements include, but are not limited to the
completion of the Transaction, obtaining support of the Company's
shareholders for the completion of the Share Offering, the use of
proceeds from the Transaction, the continued advancement of the
company's general business development, research development and
the company's development of mineral exploration projects. When
used in this press release, the words "will", "shall",
"anticipate", "believe", "estimate", "expect", "intent", "may",
"project", "plan", "should" and similar expressions may identify
forward-looking statements. Although Euromax believes that their
expectations reflected in these forward looking statements are
reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with
these forward-looking statement. Important factors that could cause
actual results to differ from these forward-looking statements
include the potential that fluctuations in the marketplace for the
sale of minerals, the inability to implement corporate strategies,
the ability to obtain financing and other risks disclosed in our
filings made with Canadian securities regulators available on SEDAR
at www.sedar.com. Forward-looking statements
contained herein are made as of the date of this news release and
Euromax disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results or otherwise, except as required by applicable
securities laws.
SOURCE EurOmax Resources Ltd.