Business
EurOmax and Silk Road enter into business combination agreement
/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\nDISTRIBUTION IN THE UNITED STATES/\n\n\nVANCOUVER, May 26 /CNW/ - EurOmax Resources Ltd. ("EurOmax") (TSX-V: EOX)\nand Silk Road Resources Ltd. ("Silk Road") (TSX-V: SIL) today announced that\nthey have entered into a definitive agreement (the "Combination Agreement")\npursuant to which EurOmax and Silk Road will combine by way of a plan of\narrangement (the "Arrangement") further to the business combination announced\nby the companies on February 23, 2009. In the Arrangement, each outstanding\ncommon share of Silk Road will be exchanged for 2.2535 common shares of\nEurOmax and Silk Road will become a wholly-owned subsidiary of EurOmax.\n\n\nBased on the 10-day volume-weighted average price of EurOmax's common\nshares of Cdn$0.174 on the TSX Venture Exchange (the "TSX-V") as at May 15,\n2009, the transaction value per Silk common share is Cdn$0.39. This represents\na premium of 57.7% based on the 10-day volume-weighted average price of both\ncompanies' common shares on the TSX-V as at May 15, 2009. The board of\ndirectors of both companies have unanimously supported the Arrangement and\nrecommend their shareholders vote their shares in favour of the business\ncombination.\n\n\nShareholders holding approximately 40% of the outstanding shares of Silk\nRoad and approximately 29% of the outstanding shares of EurOmax have agreed to\nenter into agreements to vote in favour of the Arrangement.\n\n\nHighlights of the Transaction:\n\n- Combined company will have a broader asset base and capitalization\n and stronger balance sheet.\n\n- Combined company can take advantage of operating synergies and\n efficiency, and eliminate the duplication of public company costs.\n\n- Shareholders of both companies will have a broader share trading\n market with potential for greater liquidity.\n\n- Combined company will have a highly experienced management team and\n current directors of both companies will be represented on the board\n of directors of the combined company.\n\n\nThe Business Combination\n\n\nThe Arrangement is subject to approval by the shareholders of EurOmax and\nthe shareholders of Silk Road. Full details of the Combination Agreement and\nthe Arrangement will be included in the Management Information Circul...