Euromax Files Prospectus for $35-million Offering

Euromax Resources Ltd.( TSX:EOX) has filed and obtained a receipt for a preliminary short-form prospectus in connection with a marketed offering of units. The Company expects to raise aggregate gross proceeds of C$35 million pursuant to the Offering. The Offering will be conducted through a syndicate of underwriters to be led by CIBC Capital Markets and including National Bank Financial Inc., Scotia Capital Inc., Echelon Wealth Partners Inc. and Peel Hunt LLP (together, the “Underwriters”).
Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one common share purchase warrant of the Company (each, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price representing an approximate 10% premium to the offering price for a period of 12 months from the closing of the Offering. The final pricing of the Units, including the exercise price of the Warrants, and determination of the total number of Units to be sold will be determined in the context of the market at the time of entering into an underwriting agreement for the Offering.
The Company intends to use the net proceeds of the Offering to repay amounts owing under a gold purchase and sale agreement and for project financing costs, costs relating to the engineering, procurement and construction management contract, pre-construction and permitting costs, all relating to the Company’s Ilovica-Shtuka project in Macedonia, and corporate costs and working capital purposes.
The Company will grant the Underwriters an over-allotment option (the “Over-Allotment Option”) to purchase additional Units, additional Common Shares or additional Warrants, representing in the aggregate up to 15% of the number of Units sold in the Offering. The Over-Allotment Option may be exercised in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes.
The Units will be issued by way of a short form prospectus that will be filed with securities regulatory authorities in all the provinces of Canada except Quebec. The Company has filed a preliminary short form prospectus in respect of the Offering. The preliminary short form prospectus is subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy securities until a receipt for the final short form prospectus has been issued. Before investing, prospective investors should read the short form prospectus (including the documents incorporated therein by reference) and other documents the Company has filed with the applicable Canadian securities regulatory authorities for more complete information about the Company and the Offering. The Offering is made only by the prospectus.
The Offering is subject to certain customary conditions and regulatory approvals and the entering into by the Company and the Underwriters of an underwriting agreement. The Company has applied to list the Common Shares and Warrants on the Toronto Stock Exchange (“TSX”). Listing will be subject to the Company fulfilling all the listing requirements of the TSX.
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