VANCOUVER, May 12 /CNW/ - Euromax Resources Ltd. (TSXV: EOX) ("EurOmax"
or the "Company") is pleased to announce that Silk Road Resources Ltd. ("Silk
Road"), with whom it has previously announced a business combination subject
to certain approvals, has entered into a conditional agreement to sell its
indirect joint venture interest in the Bulagou property for gross proceeds of
approximately 111.8 million RMB (approximately CAD$20 million) to Chenzhou
Mining Group Company Limited.
Brokerage fees, withholding taxes and various operating expenses will be
deducted from the gross proceeds resulting in estimated net proceeds of
approximately CAD$14 million. The sale by Silk Road is subject to approval by
Chinese government authorities, Silk Road's shareholders and the TSX Venture
Exchange. Closing is expected to occur within 2 months.
The business combination with Silk Road is completed and the sale of the
Bulagou property will allow EurOmax to conduct an aggressive multi phase
exploration program on its properties in Southeast Europe. The EurOmax
properties have been subjected to systematic exploration resulting in the
discovery of large zones of mineralization. At Ilovitza in Macedonia a 43101
resource estimate of 303 million tonnes, containing 1.6 billion pounds of
copper and 2.4 million ounces of gold has been identified. During the first
phase, EurOmax plans to undertake an accelerated exploration program including
1,400 metres of drilling at Ilovitza, geophysics and 2,000 metres at Ceovishte
in Serbia and 5,000 metres of drilling plus 4,000 metres of trenching at
Kazandol in Macedonia. At Karavansalija in Serbia mapping, trenching and
geochemistry are planned to better define drill targets.
"We wish to congratulate the Silk Road team for their success in China,"
said John Menzies, Chairman & CEO of EurOmax. "The merger of EurOmax and Silk
Road will create a fully funded company with attractive advanced gold and base
metal property portfolio in southeast Europe."
"I am excited about the geological prospects for the portfolio of
properties that EurOmax has accumulated in Southeast Europe," said David Bell,
interim CEO of Silk Road. "The funds available from the sale of the Bulagou
property will allow for an accelerated exploration program to be conducted on
these projects as was anticipated by the merger of our companies."
Certain information regarding the Company set forth in this press
release, including management's assessment of the Company's future plans and
operations contains forward looking statements that involve substantial known
and unknown risks and uncertainties. These forward looking statements are
subject to numerous risks and uncertainties, some of which are beyond the
Company's and its management's control, including but not limited to, the
impact of general economic conditions, industry conditions, the conditional
nature of the Agreement, fluctuation of commodity prices, fluctuation of
foreign exchange rates, imperfection of reserve estimates, environmental
risks, industry competition, availability of qualified personnel and
management, stock market volatility, timely and cost effective access to
sufficient capital from internal and external sources. ., Risks associated
with transferring funds from China, fluctuations in the amount of the net
proceeds to be received from the sale of the Bulagou interest are beyond Silk
Road's and its managements control. The Company's actual results, performance
or achievement could differ materially from those expressed in or implied by,
these forward looking statements and accordingly, no assurance can be given
that any of the events anticipated to occur or transpire from the forward
looking statements will provide any benefits to the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
On Behalf of the Board of Directors
"John C. Menzies"
Chairman and CEO
EurOmax Resources Limited is listed on TSX Venture Exchange Symbol: EOX
For further information:
For further information: www.euromaxresources.com, Investor Relations:
David Stothart, T: (347) 284-0062, firstname.lastname@example.org