Deal includes C$5.84 million sale of stock to EBRD
By Susanna Moon
Chicago, Jan. 12 – Euromax Resources Ltd. said it issued C$5,842,000 of shares to the European Bank for Reconstruction and Development. The EBRD also received 5,915,000 five-year warrants.
The company issued 23,368,547 common shares at a price of C$0.25 per share, according to a company press release.
The company also issued to other investors an aggregate of 8,126,850 common shares at C$0.25 each for total proceeds of C$2,032,000. The investors, all of whom are shareholders of Euromax, also received a total of 2,031,713 five-year warrants.
Euromax said on Dec. 9 that it had arranged a $5 million non-brokered private placement of units with EBRD and that it had plans for a concurrent C$2.5 million private placement with other investors on the same terms.
As previously announced, the warrants are exercisable at C$0.40 per share, which reflects a 46.2% premium to the company’s closing share price of C$0.71 on Dec. 8.
The company had planned to sell units of one common share and a quarter-share warrant at C$0.25 apiece.
Proceeds will be used for a pre-development work program at the company’s Ilovitza copper-gold project in Macedonia.
Vancouver, B.C.-based Euromax is a gold and base metal explorer with a European focus.
| Issuer: | Euromax Resources Ltd.
|
| Issue: | Shares
|
| Amount: | C$7,874,000
|
| Shares: | 31,495,397
|
| Price: | C$0.25
|
| Warrants: | 7,946,713
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.40
|
| Investor: | European Bank for Reconstruction and Development (for C$5,842,000)
|
| Pricing date: | Dec. 9
|
| Stock symbol: | TSX Venture: EOX
|
| Stock price: | C$0.71 at close Dec. 8
|
| Market capitalization: | C$424.78 million
|
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