VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/23/13 -- Euromax Resources Ltd. (TSX VENTURE: EOX) (OTCQX: EOXFF): ("Euromax" or the "Company") is pleased to announce a non-brokered private placement of up to 16,314,815 common shares of the Company at a price of $0.54 per share, for gross proceeds of up to approximately $8.8 million (the "Private Placement"). The Company intends to use the proceeds of the Private Placement to further the accelerated development of its flagship Ilovitza project, resource definition and progression of its other properties and for general working capital purposes.
The Private Placement is subject to the approval of the TSX Venture Exchange (the "TSXV"). Any securities issued pursuant to the Private Placement will be subject to a hold period of four months from the closing date of the Private Placement in accordance with applicable Canadian securities laws.
Investec Bank plc Appointment
Additionally, the Company is pleased to announce that it has entered into an agreement (the "Agreement") to appoint Investec Bank plc ("Investec") as Lead Banker whose roles will include Global Project Finance Co-ordinator and Treasury Advisor to the Company.
In consideration for Investec providing these services, subject to TSXV approval, the Company will undertake to issue to Investec on the date of completion of a listing of the Company's shares in the United Kingdom (a "UK Listing"), or in certain other circumstances as described below, a number of warrants exercisable for a period of five years following the date of issuance. Each warrant would be exercisable to acquire one common share of the Company at a 10% premium to the issue price of the securities offered in any equity financing conducted concurrently with a UK listing such that the number of warrants multiplied by the exercise price thereof would be equal to $5 million, and subject to the terms below.
It is anticipated that Investec will be participating in the Private Placement and their participation will be conditional upon acceptance by the TSXV of the terms of their appointment as Lead Banker.
The Company also intends to appoint Investec in a corporate finance capacity to assist with the ongoing evaluation of a potential UK Listing.
Commenting on the announcement, Steve Sharpe, President & CEO of the Company said: "I am delighted to announce this Private Placement which will allow us to continue with the expedited development of our flagship asset as well as continuing to add value to our pipeline properties.
Furthermore, the appointment of Investec as our Lead Bank also underscores our corporate strategy of working towards a potential London listing and determining the appropriate debt framework for the development of Ilovitza as we realise our goal of evolving into a European gold producer."
Under certain circumstances, namely in the event that the Company does not proceed with a UK listing within 12 months; an alternative equity or debt financing is completed; or the Agreement is terminated by the Company, then the exercise price of the warrants will be set at the then prevailing market price.
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