Business
EuroMax and Silk Road announce friendly business combination
/THIS NEWS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR DISTRIBUTION IN THE UNITED ST...
About this update from Euromax Resources Ltd.
[{"type":"text","content":"\n\n\n\n/THIS NEWS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR\n\n\nDISTRIBUTION IN THE UNITED STATES./\n\n\nVANCOUVER, Feb. 23 /CNW/ - EurOmax Resources Limited ("EurOmax") (TSX-V:\nEOX) and Silk Road Resources Ltd. ("Silk Road") (TSX-V: SIL) are pleased to\nannounce that they have entered into a letter of intent with regard to a\nproposed business combination (the "Transaction") to create a stronger mineral\nexploration company with enhanced financing potential.\n\n\nThe Transaction will be structured as a Plan of Arrangement under the\nCanada Business Corporations Act.\n\n\nHIGHLIGHTS OF THE TRANSACTION\n\n- On completion of the transaction each Silk Road common share will be\n automatically exchanged for 2.2535 EurOmax common shares and Silk Road\n will become a wholly owned subsidiary of EurOmax.\n\n- On completion of the Transaction, EurOmax will have approximately 112\n million shares outstanding.\n\n- The President & CEO of the resulting Company will be John C. Menzies\n and the non Executive Chairman of the board of directors will be\n appointed by Silk Road. The board of directors will have three\n representatives of each of EurOmax and Silk Road.\n\n- The board of directors of each company have approved the Transaction\n unanimously.\n\n- Shareholders representing 26% of EurOmax and 35% of Silk Road have\n agreed to enter agreements to vote in favour of the Transaction.\n\n\nTHE NEW EUROMAX\n\n\nAfter the combination, EurOmax will have a broad portfolio of gold and\nbase metal mineral exploration properties in Southeast Europe and gold\nexploration properties in Gansu Province, China.\n\n\nSignificant expressions of interest have been received for the sale of a\nnumber of the Chinese gold exploration properties.\n\n\nIn Southeast Europe, the combined company's assets will include:\n\n\n- The Ceovishte project in Serbia, where recent exploration has\n identified a series of ancient gold and lead-silver workings extend\n over a strike of nearly 5 kilometres. At the southern end of this\n trend a 2 square kilometer gold bearing silica breccia has been\n identified surrounding an altered diorite intrusion. Ancient overgrown\n open pits up to several hundred metres wide cover much of the silica\n breccia. At the northern end of this trend one drill hole encountered\n 12.4 metr...