EurOmax Resources and Silk Road Resources have entered into a letter of intent with regard to a proposed business combination to create a stronger mineral exploration company with enhanced financing potential. The transaction brings together a leader in southeast European exploration with a company focussed on gold in China’s Gansu Province.
On completion of the transaction each Silk Road common share will be automatically exchanged for 2.2535 EurOmax common shares and Silk Road will become a wholly owned subsidiary of EurOmax. On completion of the Transaction, EurOmax will have approximately 112 million shares outstanding. The President & CEO of the resulting company will be John C. Menzies and the non Executive Chairman of the board of directors will be appointed by Silk Road.
EurOmax is a Canadian company with precious and base metal projects in southeast Europe. Its objective “is the discovery of major metal deposits in this well endowed metal province and participation in their development. Our strength is our local staff, local knowledge and focus on technical excellence which combined with good partners and advanced properties positions EurOmax for a long term profitable future in the region.”EurOmax has 10 copper and gold projects in Bulgaria, Macedonia and Serbia. It is the most active exploration company in the region, with Illovitza in Macedonia being one of its major finds. This is a porphyry copper-gold deposit with 43-101 Inferred resources of 303 Mt containing 1,600 Mlb of copper, 2.9 Moz gold and 34 Mlb molybdenum. It is close to rail, road, port and smelters.
Gold is Silk Road’s focus and all of its interests are located in Gannan Prefecture in the southern part of Gansu Province. Silk Road is party to two joint venture agreements that encompass 570 km2 of highly prospective exploration ground. Its operating philosophy is to obtain a business license and initiate the transfer of exploration licenses before beginning substantive field work. This is a conservative approach that takes time but it has the benefit of reducing the risk of performing work on properties where the ultimate title is questionable. Both of its joint ventures have their business licenses and the title transfer process is well advanced.