VANCOUVER, July 14 /CNW/ - EurOmax Resources Limited (TSX-V: EOX) ("EurOmax" or, the "Company") announced that the Company has commenced a civil claim against Mr. Anthony Patriarco in the Supreme Court of British Columbia to recover benefits received as a consequence of improper trading in the common shares of the Company by an entity over which Mr. Patriarco exercises control and direction.
As referred to in the Company's news release of July 9, 2010, Mr. Patriarco recently filed insider reports regarding certain sales of common shares of the Company by Blue Ridge Educational Foundation ("Blue Ridge"). In filing these insider reports, Mr. Patriarco confirmed that he has control or direction over Blue Ridge. These insider reports (which were filed by Mr. Patriarco on June 9, 2010, several months after the trades in question) disclose that Blue Ridge sold common shares of the Company on 13 separate occasions between January 6 and March 31, 2010 for aggregate gross proceeds of US$214,015. The prices realized were between US$0.295 and US$0.20 per share. On July 13, 2010, the Company's common shares closed on the TSX at C$0.11 per share.
Mr. Patriarco was a director of the Company between June 2009 and March 2010 and at all relevant times was also a significant shareholder of the Company. The Company's claim alleges that Mr. Patriarco had knowledge that the Company had filed a confidential material change report with Canadian securities regulatory authorities disclosing that the Company's application for an extension of its Ilovitza 4 permit had been rejected by Macedonian authorities. For further details regarding the Ilovitza 4 permit, please see the Company's July 9 news release.
The rejection of the Company's application for an extension of the Ilovitza 4 permit was an adverse material change that had not been generally disclosed. The Company's claim alleges that despite the confidential nature of this information, Blue Ridge sold common shares of the Company in violation of the Securities Act (British Columbia) and the Company's policies on insider trading. Pursuant to section 136.1(1) of the Securities Act (British Columbia), EurOmax is claiming from Mr. Patriarco an amount equal to the benefits received by Blue Ridge as a result of these allegedly improper insider trades. EurOmax is also claiming punitive damages and costs.
On Behalf of the Board of Directors
"Christopher A. Serin"
Interim Chief Executive Officer
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.
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 expected outcome and conduct of the Company's lawsuit against Mr. Patriarco. 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. 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.
SOURCE EurOmax Resources Ltd.
For further information: For further information: Media: Joel Shaffer, Kingsdale Communications, 416-867-2327; For further information about EurOmax Resources Limited please visit the Company's website: www.euromaxresources.com