Euromax Resources

Published : October 21st, 2014

Euromax Resources Announces US$175 Million Gold Streaming Agreement With Royal Gold

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment

Euromax Resources Announces US$175 Million Gold Streaming Agreement With Royal Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 21, 2014) - Euromax Resources Ltd. (TSX VENTURE:EOX): together with its wholly-owned subsidiaries Euromax Resources (Macedonia) UK Limited, Euromax Resources (Macedonia) Ltd and Euromax Resources DOO Skopje ("Euromax" or the "Company"), is pleased to announce that it has entered into a US$175 million Gold Streaming Agreement with RGLD Gold AG, a wholly-owned subsidiary of Royal Gold, Inc ("Royal Gold") to finance the next stages of development and construction of the Company's Ilovitza copper-gold project in the Republic of Macedonia (the "Project").

Subject to conditions precedent, including the execution of requisite security documentation, advances under the Streaming Agreement will be available in three principal Tranches:

  • An Initial Tranche of US$7.5 million within 90 days from the date of signing
  • A Second Tranche of US$7.5 million on the 1st anniversary of the signing date
  • A Third Tranche of US$160 million towards the capital cost of the Project.

The receipt of the Initial Tranche is also subject to the Company raising not less than C$5 million in equity, for which it has already received a conditional proposal, the terms of which are currently being reviewed, and receipt of the Second and Third Tranches is subject to specific conditions precedent related to ongoing development of the Project.

The first two Tranches of the Streaming Agreement are to be used to further the development of the Project in respect of Project permitting and the completion of a definitive feasibility study ("DFS") and front end engineering and design ("FEED") planned for 2016. The Third Tranche is to be used, pro-rata with other sources of finance, to fund all capital expenditures at the Project.

Under the Streaming Agreement, the Euromax group will deliver physical gold in an amount equal to 25% of payable gold produced from the Project until 525,000 ounces have been delivered to Royal Gold, and 12.5% thereafter for life of mine. Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London PM gold fixing price as quoted by the London Bullion Market Association on the date of delivery for each ounce delivered and shall apply the balance as a reduction against the US$175 million advance payment. No interest shall be payable on the advance payments.

A summary of the terms of the Streaming Agreement is attached, as Appendix 1, and the Streaming Agreement itself together with a Material Change Report will be filed on SEDAR. Raymond James acted as financial advisor to Euromax in respect of the Streaming Agreement.

Commenting on this announcement, Varshan Gokool, CFO said:

"The commitment of US$175 million announced today goes far further than just addressing our Phase 1 financing needs and allows us to progress on track with the DFS and FEED program for delivery in 2016. Consistent with our financing strategy we have been able to leverage the asset value of Ilovitza thereby minimising dilution to shareholders. Importantly, the stream represents only 14% of our gold equivalent production and will satisfy 31% of our expected construction capital expenditure and further improve the Project IRR.

This stream financing also keeps intact and builds the foundations for the Phase 2 financing for which we intend to use project finance debt to maximise the gearing of the Project. The Streaming Agreement incorporates intercreditor principles and debt headroom for such project financing right from the start, to ensure the efficient execution of the Phase 2 financing."

Commenting on this announcement, Steve Sharpe, President & CEO said:

"We are absolutely delighted to be able to welcome Royal Gold as long-term partners at Ilovitza. We believe their commitment, which follows extensive technical, environmental and legal due diligence, is a strong endorsement of the Ilovitza Project."

About Euromax Resources Ltd.

Euromax is a Canadian exploration services and mine development company, with gold and base metal assets in Macedonia and Serbia and an exploration services company in Bulgaria. We are focused on developing mineral resources in Southeastern Europe, with the objective of becoming a world-class mining company there. Our strength lies in our corporate and local management and technical expertise in Macedonia, Bulgaria and Serbia.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements including but not limited to statements regarding the performance of the Company and its subsidiaries under a streaming agreement and the use of the financing toward to development and construction of the Ilovitza project. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on information currently available to the Company as well as the Company's current beliefs and assumptions made by the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are also encouraged to review all Company documents filed with the securities authorities in Canada, including the Management Discussion and Analysis in respect of the Company's recent financial statements under the heading "Operational and Other Business Risks and Uncertainties", which documents describe material factors and assumptions and risks that apply to the forward-looking statements in this release. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

For more information, please visit www.euromaxresources.com.

Appendix 1

Summary Terms of the Streaming Agreement

Subject to conditions precedent, including the execution of requisite security documentation, advances under the Streaming Agreement will be available in three principal Tranches:

  • An Initial Tranche of US$7.5 million within 90 days from the date of signing
  • A Second Tranche of US$7.5 million on the 1st anniversary of the signing date
  • A Third Tranche of US$160 million towards the capital cost of the Project.

The receipt of the Initial Tranche is also subject to the Company raising not less C$5 million in equity, for which it has already received a conditional proposal, the terms of which are currently being reviewed, and receipt of the Second and Third Tranches is subject to specific conditions precedent related to ongoing development of the Project.

The first two Tranches of the Streaming Agreement are to be used to further the development of the Project, including Project permitting, the completion of a DFS and FEED planned for 2016. The Third Tranche is to be used, pro-rata with other sources of finance, to fund all capital expenditures at the Project.

Under the Streaming Agreement, the Euromax group will deliver physical gold in an amount equal to 25% of payable gold produced from the Project until 525,000 ounces have been delivered to Royal Gold, and 12.5% thereafter for life of mine. Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London PM gold fixing price as quoted by the London Bullion Market Association on the date of delivery for each ounce delivered and shall apply the balance as a reduction against the US$175 million advance payment. No interest shall be payable on the advance payments.

Royal Gold will have the benefit of a first priority security interest on all assets of the Company in respect of the Project to secure all obligations of the Company under the Streaming Agreement, although under the terms of the Streaming Agreement, the Company is also permitted to raise up to US$215 million of senior ranking debt finance to fund mine construction and operations, as well as capital equipment leases and equipment financing customary for similar projects.

Royal Gold's security interest will be subordinated to that of the permitted senior finance under arrangements to be agreed with the senior financiers on the essential intercreditor terms specified in the Streaming Agreement. The security granted to Royal Gold will fall away when its entire advance payment has been credited against deliveries.

Receipt of the Second Tranche will be subject to satisfaction of a number of conditions, including Royal Gold being satisfied with the progress of the DFS and environmental and social impact assessment and the results at that time, the Project's position in relation to relevant permits and Euromax's access to sufficient financing to complete the DFS and secure all approvals necessary for development.

Receipt of instalments of the Third Tranche pro-rata with other sources of financing will be subject to the satisfaction of a number of conditions, including Royal Gold being satisfied with the final results of the DFS and the environmental and social impact assessment, that all necessary permits and approvals for construction have been received and that the Euromax group has access to sufficient financing to fund all construction costs and, to the extent funded by way of a credit facility, that all material conditions precedent to a drawdown under the said credit facility have been satisfied.

The Streaming Agreement and a Material Change Report will be filed on SEDAR.

Read the rest of the article at finance.yahoo.com
Data and Statistics for these countries : Bulgaria | Canada | Macedonia | Serbia | All
Gold and Silver Prices for these countries : Bulgaria | Canada | Macedonia | Serbia | All

Euromax Resources

EXPLORATION STAGE
CODE : EOX.V
ISIN : CA29873T3073
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Euromax is a gold and copper exploration company based in Canada.

Euromax holds various exploration projects in Bulgaria, in Canada and in Macedonia.

Its main exploration properties are KARAVANSALIJA, TRUN, POPINTSI and RAKITOVO in Bulgaria, KAZANDOL, CEOVISHTE, BRESTOVATZ and ILOVITZA in Macedonia and DURLAN POTOK and EYREMORE in Canada.

Euromax is listed in Canada and in United States of America. Its market capitalisation is CA$ 50.2 millions as of today (US$ 38.5 millions, € 34.9 millions).

Its stock quote reached its highest recent level on March 21, 1997 at CA$ 5.40, and its lowest recent point on April 25, 2014 at CA$ 0.09.

Euromax has 116 842 737 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Corporate Presentations of Euromax Resources
11/1/2012Management Share Purchases New Euromax Corporate Presentatio...
3/2/2008 Corporate Presentation - February 2008
Annual reports of Euromax Resources
2007 Annual Report
Financings of Euromax Resources
3/15/2011Announces Final TSXV Approval of $7.875 Million Private Plac...
2/22/2011Proposes Private Placement for Up to $7.875 Million
Option Grants of Euromax Resources
9/21/2012Brings Investor Relations Services In-house
3/23/2011Grant of 575,000 options at $0,35
2/3/2011Euromax issues 1.075.000 stock options at $0.31
Nominations of Euromax Resources
6/11/2013Appoints Environmental & Social Manager
6/1/2011Board of Directors Re-Elected at Annual General Meeting
9/1/2009Appoints VP Exploration and IR Team
8/7/2008appoints Greg Hall as member of advisory board
Project news of Euromax Resources
2/29/2012First Berlin Initiates Coverage of Euromax Resources
2/8/2012Euro Pacific Broker Note - EurOmax Resources
7/20/2011(Trun)Confirms Another Gold Zone at Trun - Drilling Encounters 24 ...
5/26/2011(Ilovitza)Intercepts 369 Meters at 0.22% Copper and 0.33 Grams Per Ton...
4/1/2011(Breznik)Reports 0.5 Million Ounces Gold and 2.1 Million Ounces Silve...
2/17/2011(Ilovitza)Intercepts 336.5 Meters at 0.30% Copper and 0.37 Grams Per T...
8/4/2010(Kazandol)Drilling Confirms Oxide Copper Zone at Kazandol North
11/12/2009Correction: Drilling at Breznik Intersects High Gold Grades
11/3/2009Drilling at Breznik Intersects High Grades and Extends Lengt...
7/24/2008(Ilovitza)Ilovitza Geophysical Survey
6/26/2008(Ilovitza)Announces 1.6 Billion pound copper and 2.9 million ounce gol...
Corporate news of Euromax Resources
7/7/2016Euromax Announces Final Approval To Graduate to TSX
6/20/2016Euromax Announces Receipt of Conditional Approval to Graduat...
6/14/2016Euromax Announces Reconfirmation of US$240m German Governmen...
6/14/2016Euromax Announces Reconfirmation of US$240 Million
5/20/2016Euromax Announces Completion of Convertible Debt Financings ...
5/6/2016Notice for submission of the Ilovica Project EIA for approva...
4/29/2016Euromax announces non-brokered private placement to the EBRD...
4/8/2016Proposed Funding Package and Formation of Strategic Relation...
4/8/2016Euromax Announces Proposed Funding Package and Formation of ...
3/21/2016Euromax Announces Board Appointment
1/6/2016Euromax Announces Ilovica Feasibility Study Results
10/20/2015Read our latest newsletter - September 2015
10/19/2015Euromax Announces Option Agreement for KMC
9/15/2015Read our latest newsletter - August 2015
9/10/2015Euromax Resources to Attend Upcoming Investment Summits
7/29/2015Euromax at the Macedonia 2025 Networking Reception in Toront...
7/15/2015Read our latest newsletter - June 2015
7/9/2015Euromax on Mining Journal - Rose among the thorns
7/9/2015Rose among the thorns - Mining Journal
3/24/2015Euromax Announces Appointment of Director and Funding of Sec...
3/24/2015Announces Appointment of Director and Funding of Second $3.7...
3/9/2015Euromax Announces Closing of Royal Gold Transaction
3/3/2015Announces Closing of Royal Gold Transaction
3/3/2015Euromax Announces Closing of Royal Gold Transaction
2/20/2015Certificate of Appreciation awarded to Euromax Resources
1/12/2015Euromax Resources Closes Private Placement
1/12/2015Euromax Resources Closes Private Placement
12/23/2014Re-filing of Amended Technical Report
12/22/2014Re-Filing of Amended Technical Report
12/10/2014Euromax Announces Non-­Brokered Private Placement to the EBR...
12/9/2014Euromax Announces Non-Brokered Private Placement to the EBRD
10/21/2014Royal Gold Acquires Gold Stream on Euromax’s Ilovitza Projec...
10/21/2014Euromax Resources Announces US$175 Million Gold Streaming Ag...
9/27/2013Receives C$1 Million from Sale of Thrace Resources
9/12/2013Announces Discovery Drill Hole at Gradina, KMC, Serbia
8/5/2013(Ilovitza)Announces New Mineral Resource Estimate for Ilovitza Project
7/24/2013Publishes First Company Newsletter
7/24/2013Publishes First Company Newsletter
5/24/2013(Ilovitza)Announces New Mineral Resource Estimate for Trun Project-Dri...
5/9/2013All Resolutions Passed at Euromax Annual General & Special M...
5/9/2013All Resolutions Passed at Euromax Annual General & Special M...
3/26/2013(Ilovitza)Files Updated Ilovitza PEA
3/21/2013(Ilovitza)Announces 2012 Drilling Results from Ilovitza, Macedonia
2/19/2013Announces 2012 Drilling Results from KMC Project, Serbia
2/14/2013(Ilovitza)Opens Information Centre in Ilovitza
1/23/2013Announces $8.8 Million Non-Brokered Private Placement; Appoi...
11/8/2012Board and Management Changes
10/24/2012(Ilovitza)Announces Approval of Ilovitza EIS & Preliminary Economic As...
10/16/2012(Ilovitza)Announces Share Consolidation; New Company Secretary Appoint...
9/13/2012Director's Dealings
5/23/2012Moves to Europe
7/21/2011Drill High Grades
7/7/2011(Breznik)Large Geophysical Anomaly at the Breznik Au-Ag Project Teste...
6/14/2011(Trun)Discovers New Gold Zones at Trun
5/4/2011Commences Drilling and Geophysical Programs
4/21/2011Adds to Technical Advisory Board and Issues Stock Options to...
8/18/2010Reminds Shareholders to Vote their BLUE Proxy By Friday, Aug...
7/26/2010files Information Circular and Urges Shareholders to Vote th...
7/14/2010Sues Anthony Patriarco for Insider Trading
10/20/2009 Bulgarian project update
7/16/2009EOX Closes USD15 Million Property Sale
7/17/2009Now Has A New Lease Of Life In South Eastern Europe
5/27/2009Silk Road Business Combination
8/22/2008Closes $0.75 Million Financing
7/14/2008Exposure to West African Gold Exploration
7/7/2008Dr. Patriarco Joins EurOmax Board
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TSX-V (EOX.V)Other OTC (EOXFF)
0.430+0.00%0.024-20.00%
TSX-V
CA$ 0.430
07/08 15:09 -
0%
Prev close Open
0.430 0.430
Low High
0.430 0.430
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.430 -%
Volume 1 month var.
19,500 -%
24hGold TrendPower© : -21
Produces
Develops
Explores for Copper - Gold - Lead - Molybdenum - Silver - Zinc
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.08-1.26%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 5.64+6.62%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.73-2.28%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.08+0.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.00+2.04%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 8.37-0.59%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.18-2.78%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.32+5.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.47+1.65%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 64.25+0.19%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :