VANCOUVER, Aug. 11 /CNW/ - EurOmax Resources Ltd (TSX-V: EOX) EurOmax Resources ("Euromax" or the "Company") announces that Institutional Shareholder Services ("ISS"), formerly RiskMetrics, has recommended that shareholders vote their BLUE proxy in support of the Management Director Nominees. ISS is an independent international corporate governance analysis company. Their recommendations assist shareholders to make decisions when faced with a proxy voting decision. In its report, ISS noted that the Dissidents have not provided a business plan. ISS carefully analyzed each of the incorrect assertions made by the dissidents and stated, among other things, the following in its report:
Regarding cash depletion:
"Therefore, it appears that the company has clearly communicated its
intentions with the bulk of the subsequent spending being related to
exploration activity...In the circumstances, we will defer to
management as they have carried out exploration as announced and are
taking steps to implement a reasonable plan to create shareholder
Regarding decline in EurOmax stock price:
"Considering the small float and limited liquidity, it is plausible
that Patriarco's sales (Jan. 6 to Mar. 31) could have negatively
impacted the share price, particularly given that his trades
accounted for a large percentage of total volume during that time
period (when EOX declined from the $0.30 range to the $0.20 range),
as pointed out by management...the stock price has apparently been
impacted by multiple factors, not all of which are under management
Regarding the CEO Search:
"Given the uncertainty surrounding EOX at the board level, we believe
the delay is reasonable."
"On balance, the board has carried out exploration as announced and
appears to be executing a reasonable plan, in line with the approach
suggested by the dissidents. In the circumstances, we are willing to
give the incumbents the benefit of the doubt and believe that
shareholders can give management more time to implement their
strategy to create value."
"We are pleased that this leading independent corporate governance advisor has validated Management's position and recommended that shareholders vote their BLUE proxy. ISS' advice to Euromax shareholders is that Management is doing the job, the Company is in good hands, and Management deserves your vote today," said Christopher Serin, Interim Chief Executive Officer and Director of EurOmax. "Shareholders need to vote their BLUE proxy today to protect their investment and enable their Board and Management team to create wealth for shareholders. Alternatively, shareholders can let Mr. Patriarco take control of the Company, with no plan, a weak team and a proposed CEO with no exploration or Balkan country experience."
PROXY VOTING DEADLINE
In order to be counted at the Meeting, BLUE proxies must be received not later than 5:00 p.m. (Vancouver time) on Friday, August 20, 2010 or, in the case of any adjournment of the Meeting, not less than 48 hours, excluding Saturdays, Sundays and holidays, prior to the time of the adjournment. The time limit for deposit of proxies may be waived by the Chair of the Meeting at his or her discretion without notice. If you require assistance voting your proxy, contact Kingsdale Shareholder Services Inc. toll free at 1-866-851-2571 or by email at email@example.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
"Christopher A. Serin"
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements. Forward-looking statements are statements that relate to future events or financial performance. In some cases, you can identify forward-looking statements by the use of terminology such as "may", "should", anticipates", `believes", "expects", "intends", "forecasts", "plans", or the negative of these terms or similar terminology. These forward-looking statements speak only as of the date of this news release and are based on current expectations of the Company's management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties and other factors, including: the possibility that the nominees of the Dissident will be elected, general economic and business conditions, risks associated with the exploration and development activities of the Company, competition for materials, equipment, qualified personnel and service providers, technological changes and developments in the industry and regulatory uncertainties and potential environmental liabilities. The Company cautions that the list of risks and assumptions set forth above is not exhaustive. All forward-looking statements in this news release are qualified by these cautionary statements. These risks, as well as risks that the Company cannot currently anticipate, could cause the Company actual results, levels of activity or performance to be materially different from any future results, levels of activities or performance expressed or implied by these forward-looking statements. Except as required by applicable law, the Company does not intend to update any of these forward-looking statements.
SOURCE EurOmax Resources Ltd.
For further information: For further information: Investors: www.euromaxresources.com, Kingsdale Shareholder Services Inc., 1-866-851-2571; Media: Joel Shaffer, Kingsdale Communications Inc., 416-867-2327