EurOmax and Silk Road announce completion of business combination; Update on sale of Bulagou property



    
    /THIS NEWS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR
    DISTRIBUTION IN THE UNITED STATES/
    

    VANCOUVER, June 29 /CNW/ - EurOmax Resources Ltd. (EOX: TSX-V) and Silk
Road Resources Ltd. (SIL: TSX-V) are pleased to announce that the previously
announced business combination by way of plan of arrangement (the
"Arrangement") was completed effective as of June 29, 2009. Silk Road's shares
will be delisted effective as of June 30, 2009. The Arrangement was approved
by 99.7% of the votes cast by shareholders of EurOmax and 100% of the votes
cast by shareholders of Silk Road at their shareholder meetings held on June
25, 2009 and approved by the Supreme Court of British Columbia on June 26,
2009.

    
    Combined Company Highlights

    EurOmax Resources, now that it has completed the business combination with
Silk Road, has the following attributes:

    -   The benefits of EurOmax's exploration projects which it anticipates
        advancing with the proceeds of the sale of Silk Road's Bulagou
        property when they are received.

    -   A broader share trading market with the potential for greater
        liquidity.

    -   Greater financing and acquisition opportunities in the mining
        industry.

    -   Removal of duplication of public company costs.

    -   An experienced management team with complementary skills in
        exploration, business and project development.
    

    Transaction Summary

    EurOmax acquired all of the issued and outstanding shares of Silk Road in
the Arrangement. Pursuant to the terms of the Arrangement, holders of Silk
Road shares are now entitled to receive 2.2535 EurOmax shares for every Silk
Road share held. The outstanding options and warrants of Silk Road are deemed
to be exchanged for EurOmax options and warrants, adjusted on the basis of the
aforementioned exchange ratio, on the same terms and conditions as the
original options and warrants. Also, by the terms of the Arrangement, Silk
Road and 7167911 Canada Ltd., a wholly-owned subsidiary of EurOmax, have been
amalgamated under the name "7167911 Canada Ltd." and the amalgamated company
is a wholly-owned subsidiary of EurOmax. Additional information on the
business combination is available in the information circulars of EurOmax and
Silk Road, each dated May 26, 2009, available on SEDAR at www.sedar.com.

    Exchange of Silk Road Shares for EurOmax Shares

    Silk Road's shares will be delisted from the TSX Venture Exchange
effective as of June 30, 2009. To receive their EurOmax shares pursuant to the
Arrangement, Silk Road shareholders should surrender their Silk Road share
certificates to the depositary, together with a properly completed letter of
transmittal, to receive their EurOmax shares pursuant to the Arrangement. A
copy of the letter of transmittal was sent to Silk shareholders and is also
available at www.sedar.com.

    Board and Management of EurOmax

    As a result of the closing of the Arrangement, EurOmax now owns 100% of
Silk Road's shares and assets. The board of directors of EurOmax now consists
of six directors: John Menzies, Christopher Serin, Michael Mason, Anthony
Patriarco, David Bell and Robert Power. John Menzies and Christopher Serin
will remain the CEO and CFO, respectively, of EurOmax. Robert Power will serve
as the Chairman of the Board of EurOmax.

    Update on Sale of Bulagou Property

    On June 25, 2009, 96.63% of the votes cast by shareholders of Silk Road
at its shareholder meeting approved the sale of its 90% interest in the
Bulagou property in the Gansu province of China to Chenzhou Ming Group Company
Limited ("Chenzhou") pursuant to a previously announced agreement between
Chenzhou and Power Fortune Resources Limited, a wholly owned subsidiary of
Silk Road. The gross proceeds of the sale are expected to be approximately
111.8 million RMB (subject to withholding taxes, brokerage fees and various
operating expenses). The sale of the Bulagou property has been conditionally
approved by the TSX Venture Exchange subject to receipt of the above described
shareholder approval and delivery of certain materials requested by the TSX
Venture Exchange by July 10, 2009. The sale is expected to be completed in the
third quarter of 2009 when the final transfer of the 90% interest in the
Bulagou property is registered in the name of Chenzhou and the foreign joint
venture company, Jiaxin Minerals Company Limited, is converted into a domestic
Chinese company.

    Future Activities of EurOmax

    After, and subject to, the receipt of the proceeds from the sale of the
Bulagou property, EurOmax intends to (i) commence drilling programs on its
Ilovitza and Kazandol projects in Macedonia; (ii) commence a geophysical and
drilling program on its Ceovishte project in Serbia; and (iii) complete the
minimum drilling program required by its option agreements with Freeport
McMoRan Exploration Company.
    At Ilovitza, EurOmax anticipates the first phase of the 2009 program will
involve drilling two 750 metre diamond drill holes to test the potential core
of the porphyry copper gold system. A NI 43-101 compliant inferred mineral
resource of 303 million tonnes grading 0.51% copper equivalent has been
identified immediately adjacent to this potential core of the porphyry copper
gold system.
    At Kazandol, the drilling program will consist of 5,000 metres of reverse
circulation drilling, 4,000 metres of trenching and metallurgical testing.
This program is designed to identify a potential mineral resource on the
northern portion of the Kazandol licence and complete reconnaissance for
potential expansion in the southern portion of the licence.
    At Ceovishte, the geophysical survey is designed to identify drill
targets in the 1.4 kilometre by 1 kilometre silica breccia zone on the
southern end of a 4 kilometre long zone. A 2,000 metre drilling program is
planned for the identified drill targets.

    CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

    This news release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
operations and financial condition of EurOmax and the completion of the sale
of the Bulagou property. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved". Assumptions upon which such forward looking
statements are based include that EurOmax will receive the proceeds from the
sale of the Bulagou property. Many of these assumptions are based on factors
and events that are not within the control of EurOmax and there is no
assurance they will prove to be correct. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
EurOmax to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to the
integration of acquisitions, risks related to international operations, actual
results of current exploration activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be refined and
although EurOmax has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. EurOmax does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in accordance
with applicable securities laws.
    For further information regarding the resource estimate on the Ilovitza
project, please refer to EurOmax's technical report entitled "Technical Report
with Copper Gold Resources on the Ilovitza Project, Macedonia, on behalf of
EurOmax Resources Limited, dated August 7, 2008 by G.S. Carter, P. Eng. and
Broad Oak Associates" which is available under EurOmax's profile at
www.sedar.com.
    The scientific and technical information contained in this news release
has been prepared by, or under the supervison of, John C. Menzies, a
"qualified person" for the purposes of NI 43-101.

    
    The TSX-V has in no way passed upon the merits of the transaction
    discussed above and has not reviewed and does not accept responsibility
    for the adequacy or accuracy of the contents of this press release.

    On Behalf of the Boards of Directors

    "John C. Menzies"
    Chief Executive Officer
    EurOmax Resources Ltd.

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    EurOmax Resources Limited is listed on TSX Venture Exchange Symbol: EOX
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For further information:

For further information: www.euromaxresources.com; Investor Relations:
David Stothard, T: (347) 284-0062, d.stothart@euromaxresources.com


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