Macedonia mining: Euromax completes convertible dept financing with EBRD

24. May 2016. / Mining

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Euromax Resources Ltd., is pleased to announce that, further to its announcement on April 29, 2016, the Company has today satisfied the required disbursement conditions under a convertible loan agreement with the European Bank for Reconstruction and Development, and the gross loan proceeds of USD$5,000,000 have been disbursed by the EBRD and are expected to be received by the Company next week.

In addition, the Company is also pleased to confirm that it has today completed its previously announced private placement of convertible debentures pursuant to a convertible debenture subscription and investor rights agreement dated April 29, 2016. The Convertible Debentures were issued to an affiliate of Consolidated Contractors Company Group.

The Convertible Loan, the Convertible Debentures and any securities converted into thereunder are subject to the customary four month hold period for a private placement.

The Loan Disbursement and the proceeds from the Convertible Debentures will be used to fund the on-going pre-development work, including feasibility, capex, optimisation and the preparation of the front-end engineering design for the Ilovica project in the FYR Macedonia.

Immediately prior to the completion of the Loan Disbursement, the EBRD had ownership and control over a total of 23,368,547 common shares of the Company, representing 19.99% of the issued and outstanding common shares. Assuming a conversion by the EBRD of all of the amounts owing or potentially owing under the Convertible Loan Agreement, a conversion price for all amounts under the Convertible Loan Agreement of C$0.40 per share, using a Bank of Canada noon rate on 19 May 2016, the EBRD would acquire ownership and control over a total of 23,302,395 common shares of Euromax, representing 16.63% of the issued and outstanding common shares. Immediately following such a conversion, together with the common shares already owned by EBRD and assuming conversion of the warrants of the Company held by the EBRD, the EBRD would have ownership and control over 52,585,942 common shares of Euromax, representing 36.00% of the issued and outstanding common shares.

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