Euromax Resources Ltd, which was up 12.5% before the trading halt, has entered into a term sheet for an investment of up to US$30 million in three tranches and a strategic alliance with CC Mining S.A. which is related to Consolidated Contractors Company Group, in respect of certain construction activities for the Ilovica project in Macedonia. CCM shall also be entitled to nominate a director to the board of Euromax. CCM shall also be entitled to appoint a member to the Euromax Technical Committee to assist in the front-end-engineering design process and the development of the Project. Further to the above transaction, an insider of the Company is contemplating, subject to its internal approvals, an investment of up to US$5 million by way of a convertible loan in the Company by means of a non-brokered private placement. The proceeds from the insider’s proposed convertible loan would also be used to fund pre-development work, including front-end engineering and optimisation studies, for the Ilovica Project.
The stock is up 12.50% or $0.05 after the news, hitting $0.45 per share. About 6,600 shares traded hands. Euromax Resources Ltd has risen 6.00% since March 9, 2016 and is uptrending. It has underperformed by 0.69% the S&P500.
Euromax Resources Ltd is a gold and base metal mining company. The company has a market cap of $52.58 million. The Firm operates in two sectors in the mining industry: The exploration and development of mineral right interests, and the provision of exploration and evaluation services. It currently has negative earnings. The Firm has two gold and base metal properties located in Macedonia and Serbia.
Source: Sonoran weekly review