Non-brokered, oversubscribed deal funds exploration programs in Europe
By Devika Patel
Knoxville, Tenn., Jan. 17 - EurOmax Resources Ltd. said it settled a C$3.81 million oversubscribed non-brokered private placement of units on Monday. The deal priced for C$3.26 million on Jan. 11.
The company sold 17.3 million units of one common share and one warrant at C$0.22 per unit.
Each warrant will be exercisable at C$0.30 for two years. The strike price is a 25% premium to C$0.24, the Jan. 10 closing share price, while the offer price is an 8.33% discount to the share price.
Investors included Mark Gustafson, who invested C$176,000, and Novo Resources Corp., which invested C$1.54 million.
Proceeds will be used for the company's exploration programs in Southeastern Europe and general working capital purposes.
"The quick completion of this oversubscribed financing in a challenging capital market environment is a testament to the exploration success on our three core properties in Southeastern Europe," president and chief executive officer Mark Gustafson said in a press release.
"The financing also speaks clearly to the long-term commitment level of some of our largest current shareholders as well as key members of the management team. Proceeds from this placement will be utilized to continue a very active drilling program in 2012 for EurOmax."
EurOmax is an oil, gas and mineral company based in Vancouver, B.C.
| Issuer: | EurOmax Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$3,806,000
|
| Units: | 17.3 million
|
| Price: | C$0.22
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Non-brokered
|
| Investors: | Mark Gustafson (for C$176,000) and Novo Resources Corp. (for C$1.54 million)
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 16
|
| Stock symbol: | TSX Venture: EOX
|
| Stock price: | C$0.24 at close Jan. 10
|
| Market capitalization: | C$36.98 million
|
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