Business
EurOmax's business combination partner, Silk Road Resources, announces sale of Chinese gold project
VANCOUVER, May 12 /CNW/ - Euromax Resources Ltd. (TSXV: EOX) ("EurOmax" or the "Company") is plea...
About this update from Euromax Resources Ltd.
[{"type":"text","content":"\n\n\n\nVANCOUVER, May 12 /CNW/ - Euromax Resources Ltd. (TSXV: EOX) ("EurOmax"\nor the "Company") is pleased to announce that Silk Road Resources Ltd. ("Silk\nRoad"), with whom it has previously announced a business combination subject\nto certain approvals, has entered into a conditional agreement to sell its\nindirect joint venture interest in the Bulagou property for gross proceeds of\napproximately 111.8 million RMB (approximately CAD$20 million) to Chenzhou\nMining Group Company Limited.\n\n\nBrokerage fees, withholding taxes and various operating expenses will be\ndeducted from the gross proceeds resulting in estimated net proceeds of\napproximately CAD$14 million. The sale by Silk Road is subject to approval by\nChinese government authorities, Silk Road's shareholders and the TSX Venture\nExchange. Closing is expected to occur within 2 months.\n\n\nThe business combination with Silk Road is completed and the sale of the\nBulagou property will allow EurOmax to conduct an aggressive multi phase\nexploration program on its properties in Southeast Europe. The EurOmax\nproperties have been subjected to systematic exploration resulting in the\ndiscovery of large zones of mineralization. At Ilovitza in Macedonia a 43101\nresource estimate of 303 million tonnes, containing 1.6 billion pounds of\ncopper and 2.4 million ounces of gold has been identified. During the first\nphase, EurOmax plans to undertake an accelerated exploration program including\n1,400 metres of drilling at Ilovitza, geophysics and 2,000 metres at Ceovishte\nin Serbia and 5,000 metres of drilling plus 4,000 metres of trenching at\nKazandol in Macedonia. At Karavansalija in Serbia mapping, trenching and\ngeochemistry are planned to better define drill targets.\n\n\n"We wish to congratulate the Silk Road team for their success in China,"\nsaid John Menzies, Chairman & CEO of EurOmax. "The merger of EurOmax and Silk\nRoad will create a fully funded company with attractive advanced gold and base\nmetal property portfolio in southeast Europe."\n\n\n"I am excited about the geological prospects for the portfolio of\nproperties that EurOmax has accumulated in Southeast Europe," said David Bell,\ninterim CEO of Silk Road. "The funds available from the sale of the Bulagou\nproperty will allow for an a...