Euromax Resources (EOX.V) seems to be getting all its ducks in a row at Ilovitza as it has signed an important agreement with a contractor which will provide additional funding to get the project going. CC Mining, the contractor, has invested C$5.2M in a convertible loan bearing an interest rate of 9% and maturing in 2018. Subsequently, CC Mining will also invest US$5M in Euromax buy investing in a private placement of the company, whilst the final piece of this financing-puzzle consists of an US$20M subordinated loan with a 10 year term.
The proceeds of this cash injection as well as the additional convertible loan issed to insiders of the company will go towards the development and pre-development activities at Ilovitza. We visited the project several years ago, and we’re impressed how the management team has been able to advance the project despite the low copper and gold prices on the market. On top of that, the company will be ‘promoted’ to the main board of the Toronto Stock Exchange, which should increase the investor awareness of this company.