Business
EurOmax announces amendments to agreements with Freeport
/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, June 26 /CNW/ - EurOmax Resources Ltd. ("EurOmax" or the\n"Company") is pleased to announce that it has entered into amending agreements\nwith Freeport-McMoran Exploration Corporation (formerly Phelps Dodge\nExploration Corporation) ("FMEC") in respect of each of:\n\n\n(i) the option agreement pursuant to which it has the option to\n acquire a 100% interest (subject to the right of FMEC to reacquire\n a 70% interest) in exploration licences covering certain\n properties in Macedonia (the "Macedonia Option Agreement"); and\n\n(ii) the option agreement pursuant to which it has the option to\n acquire 100% (subject to the right of FMEC to reacquire 70%) of\n the issued and outstanding shares of a subsidiary of FMEC holding\n exploration licences covering certain properties in Serbia (the\n "Serbia Option Agreement").\n\n\nThe amending agreements are hereinafter referred to as the "Macedonia\nAmendment" and the "Serbia Amendment", respectively.\n\n\nEach of the Serbia Option Agreement and the Macedonia Option Agreement\nprovide that to exercise the option granted thereunder, EurOmax must, in\nmaterial part, complete a minimum drilling program, incur a specified amount\nin exploration expenditures and satisfy all work commitments required by the\nterms of the optioned exploration licences.\n\n\nUnder the Serbia Option Agreement, and by way of a separate services\nagreement in respect of the Macedonia Option Agreement (i) FMEC manages the\nexploration activities on the subject properties (and receives a management\nfee therefor); and (ii) exploration expenditures are paid directly by FMEC\nusing funds prepaid by EurOmax. FMEC has however, on occasion, incurred\nexploration expenditures on behalf of EurOmax using its own funds.\n\n\nEurOmax did not complete, by the application deadline, the minimum\ndrilling program required by either of the Serbia Option Agreement or the\nMacedonia Option Agreement. Also, approximately US$200,000 of the minimum\nexploration expenditures required by the Macedonia Option Agreement and Serbia\nOption Agreement was paid using FMEC's own funds and that amount must be\nrepaid by EurOmax. In addition, EurOmax cont...