- Letter highlights what exactly Mr. Patriarco did while a director and
why he is under investigation by the British Columbia Securities
- Board and Management reiterate strategic plan to create value for all
shareholders and progress made in this regard
VANCOUVER, Aug. 9 /CNW/ - EurOmax Resources Limited (TSX-V: EOX) ("EurOmax" or the "Company") today announced the mailing of a letter to shareholders that provides shareholders with more important information regarding Anthony Patriarco and others (together, the "Dissidents") and what the Board and Management team are doing to create value. The letter is included in this release and can also be viewed at www.euromaxresources.com. Shareholders are reminded to vote their BLUE proxy well in advance of the August 20, 2010 proxy voting deadline.
SHAREHOLDER CONFERENCE CALL
Christopher Serin, Interim Chief Executive Officer, Chief Financial Officer and Director will host a conference call for shareholders of EurOmax on Thursday, August 12, 2010. Investors are invited to email any questions they would like answered to firstname.lastname@example.org, by Wednesday, August 11, 2010.
SHAREHOLDER CONFERENCE CALL DETAILS:
DATE: Thursday, August 12, 2010
TIME: 12:00 p.m. (Noon, Toronto Time),
9:00 a.m. (Vancouver Time),
5:00 p.m. (London Time),
6:00 p.m. (Zurich Time)
North America toll-free: 1-800-319-4610
United Kingdom toll-free: 0808-101-2791
Switzerland toll-free: 0800-890-163
Callers from other regions should check the following link to see if a toll free number is available from their location: http://services.choruscall.com/links/itfsa.html. If no toll free service is available, dial: 1-604-638-5340.
Please note that conference call attendees will be in listen-only mode. Attendees should dial in 5 - 10 minutes prior to the scheduled start time and ask the operator to join the call.
A recording of the call will be available at www.euromaxresources.com or by dialing 1-800-319-6413 or 1-604-638-9010 and entering code 5728 followed by the number sign.
LETTER TO SHAREHOLDERS
The letter to shareholders from the EurOmax Board of Directors and Director Nominee Dimitar L. Dimitrov, is as follows:
August 5, 2010
Dear Valued Shareholders:
Your investment in EurOmax Resources Limited ("EurOmax" or the "Company") is at risk because Anthony Patriarco views your Company as his Company. On July 29, 2010, Anthony Patriarco and others (together, the "Dissidents") announced that they had filed a dissident proxy circular in an attempt to take control of EurOmax. We are writing today to:
- Remind you of what exactly Mr. Patriarco did while "representing your
interests as a director" and alert you to the fact that he is under
investigation by the British Columbia Securities Commission ("BCSC")
for insider trading.
- Describe our strategic plan to create value for all shareholders and
the progress we have made in this regard.
PATRIARCO ILLEGALLY SOLD EUROMAX SHARES
Mr. Patriarco is being sued by EurOmax for illegal insider trading. He sold shares of the Company through a trust he controls at a time when he was in possession of inside information that was not available to other shareholders. As Directors, and fellow shareholders, we share your disgust and outrage with what has transpired.
At a time when Mr. Patriarco should have been focused on creating shareholder value, he was focused on creating value only for himself. Mr. Patriarco sold 782,000 shares between January 6, 2010 and March 31, 2010 representing 23% of the trading volume. During that same period the value of EurOmax shares dropped by 33%. Put another way, shareholders lost $13,206,825 in market value between January 6, 2010 and March 31, 2010, while Mr. Patriarco sold 782,000 shares.
Many of you have contacted us to express your outrage regarding Mr. Patriarco's actions and to implore your Board of Directors to take various actions. We have heard you and are committed to protecting your interests.
THE BCSC IS INVESTIGATING MR. PATRIARCO
Mr. Patriarco, who is seeking to obtain exclusive control of your Company, is under investigation by the BCSC for insider trading. On July 16, 2010, the BCSC issued a statutory order requiring that EurOmax provide information and records regarding Mr. Patriarco's knowledge of inside information during the time of the trading activities described above. We are complying fully with the investigation.
A STRATEGIC PLAN FOR VALUE CREATION
Our plan to create value for all shareholders warrants repeating. While reviewing our strategic plan, bear in mind that Mr. Patriarco has not provided any alternative plan.
Your Company has a portfolio of properties in an area of Europe that has a rich mining tradition that dates back to ancient times. That portfolio of properties includes gold prospects and prospects with gold and other metals. We are committed to exploiting the quality of EurOmax's portfolio of projects and its first-mover status in the Balkans. We are achieving results by combining Western expertise with top local geological expertise. We have launched a corporate marketing campaign in Europe, where investments in precious metals companies, such as EurOmax, are highly desired and the Balkan countries are well understood.
Highlights of 2010 alone include:
- Drilling at Ilovitza 6 created excitement by extending the
mineralized porphyry gold-copper deposit, which is the type of
deposit that is of significant interest in the marketplace right now,
as described below.
- Drilling at the Breznik property extended the length of the high
grade zone by 120% and a new gold copper target had been discovered.
- Drilling confirmed a potential zone of oxide copper mineralization
over an area 900 metres long and 400 metres wide at Kazandol North.
The identification and exploration of a quality property, followed by a strategic partnership with a major mining company, for development and production of a property, is a proven strategy to create wealth. In particular, we note that large mining companies are increasingly acquiring properties that combine gold and other metals and industry leaders have been publicly supportive of this strategy. A recent example is Thompson Creek Metals Company Inc.'s agreement to acquire Terrane Metals Inc. The total value of the consideration offered to the shareholders of Terrane is approximately C$650 million. We firmly believe that this is the optimal value-creation strategy for your Company. As a result, we are focused on completing a joint venture with a large, major mining company to take EurOmax to the next level. We are having an ongoing dialogue with a number of large mining producers to advance this strategy and create value for shareholders.
Your Board demanded answers from Mr. Patriarco. The silence is deafening. He has chosen to ignore the important questions shareholders are asking. Justifiably, this has resulted in alarm and speculation. This is a valid reaction, given Mr. Patriarco's failure to respond with a plan to create value for all shareholders.
Your Board and Management team are executing a strategic plan. The choice for shareholders is simple. Vote your BLUE proxy to protect your investment and allow your Board and Management team to build on this momentum, or suffer whatever Mr. Patriarco has in store for you.
VOTE YOUR BLUE PROXY TODAY
We appreciate the outpouring of support we have received from shareholders. Your calls and emails are warmly received and we reiterate our commitment to doing whatever possible to protect and promote the interests of all shareholders. The Company's website (www.euromaxresources.com) contains additional important information regarding EurOmax and what your Board of Directors is doing to protect your investment from Anthony Patriarco.
What is needed most is for shareholders to express their support by voting your BLUE proxy well in advance of the August 20, 2010 proxy deadline. If you require assistance in voting your proxy, contact Kingsdale Shareholder Services Inc. toll free at 1-866-851-2571 or by email at email@example.com.
(Signed) Robert Power (Signed) Christopher Serin
Robert Power Christopher Serin
Chairman of the Board of Directors Interim Chief Executive Officer,
Chief Financial Officer and Director
(Signed) David R. Bell (Signed) Michael T. Mason
David R. Bell Michael T. Mason
(Signed) John Cook (Signed) Dimitar L. Dimitrov
John Cook Dimitar L. Dimitrov
Director Senior Vice President, Exploration
and Management Director Nominee
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 firstname.lastname@example.org.
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