Euromax Resources (OTC Other: EOXFF; TSX-V: EOX) has completed the closing of a non-brokered private placement totaling 17,300,000 units (the “Units”) at a price of $0.22 per Unit for gross proceeds of $3,806,000. Each Unit consists of one common share and one common share purchase warrant, each warrant entitling the holder thereof to purchase one additional common share for a period of 24 months at a price of $0.30. The closing of the 17,300,000 Units is an increase over the 14,800,000 Units originally contemplated.
The offering was comprised of four subscribers, including (i) an institutional investor, which is the Company’s largest current shareholder (7,000,000 Units); (ii) Novo Resources Corp. (7,000,000 Units); (iii) an institutional investor, which is a current shareholder; and (iv) Mark Gustafson, President and CEO of the Company (800,000 Units). Dr. Quinton Hennigh, who was recently appointed Chief Geologist for EurOmax, is President and CEO of Novo Resources Corp. Subsequent to the offering Mark Gustafson owns 4,316,000 common shares or 2.6% of the Company’s outstanding shares.
“The quick completion of this oversubscribed financing in a challenging capital market environment is a testament to the exploration success on our three core properties in Southeastern Europe”, commented Mark Gustafson, President & CEO of EurOmax. “The financing also speaks clearly to the long-term commitment level of some of our largest current shareholders as well as key members of the management team. Proceeds from this placement will be utilized to continue a very active drilling program in 2012 for EurOmax.”