EurOmax Resources' (CVE:EOX)(OTCQX:EOXFF) share consolidation is the first step in a process that will transform the junior explorer into a London-based exploration and development company.
Currently listed in Toronto and the US, the company has
three advanced gold and base metal properties in Bulgaria, Serbia, and
Macedonia. These are mining-friendly regions, open to foreign
investment, with a skilled and knowledgeable workforce.
really looking at transforming into a London-based exploration and
development company," EurOmax chief operating officer Mark Gustafson
told Proactive Investors in a recent interview.
"Our assets are
in Southeastern Europe, so they're closer to London than Toronto plus
our three new proposed directors are all based in London. There will be a
very strong London-based influence on the board and management team."
The eventual move to the London Stock Exchange may take place "well into next year."
shareholders recently approved a stock consolidation on a one for three
basis, which would reduce outstanding shares to approximately 55
million common shares from around 166 million currently. They also voted
to elect the following to the company’s board of directors: Mark
Gustafson, Randal Matkaluk, Quinton Hennigh, Martyn Konig, Varshan
Gokool and Steve Sharpe.
"We received really strong support," EurOmax's Gustafson said.
company's key management team now inclused: Martyn Konig, non-executive
chairman; Steve Sharpe, president & chief executive officer;
Varshan Gokool, chief financial officer; Mark Gustafson, chief operating
officer; Dimitar Dimitrov, senior vice-president of exploration;
Quinton Hennigh, chief geologist and and Aurora Davidson, VP of finance
& corporate secretary.
Gustafson says that the rationale
behind the consolidation was to reduce the number of outstanding shares
to a level "more appropriate" for a Europe-based company.
sign of his strong belief in the company, Gustafson has invested close
to $1 million of his own money in EurOmax stock purchases over the past
EurOmax has three core properties, one in each of the three countries where it operates.
most advanced is the Illovitza copper-gold porphyry project in
Macedonia - which "has the obvious development potential" to become a
producing mine, Gustafson says.
In April, EurOmax unveiled an
updated NI 43-101 resource update giving an indicated sulphide and mixed
mineral resource of 22 million tonnes comprising 224,000 ounces of gold
at an average grade of 0.31 grams per tonne (g/t) and 112 million
pounds copper at an average grade of 0.23%.
On an inferred
basis, the sulphide and mixed mineral resource was 374 million tonnes
comprising 3.84 million ounces gold at an average grade of 0.32 g/t and
1.74 billion pounds copper at an average grade of 0.21%.
Bulgaria, Trun is an intrusion-related gold project over 67 square
kilometres. A January 2011 NI 43-101 report outlined an inferred
resource of 2.1 million ounces of gold at the Logo prospect.
Earlier this month, EurOmax said recent drilling at Trun led to a high-grade silver discovery.
on the KD Zone at Little Hill, the southernmost of two granite
intrusions on the property, returned 12.8 metres at 975 g/t silver,
including 3.0 metres at 3,450 g/t silver in diamond drill hole 12132.
In Serbia, meanwhile, KMC is a large skarn/porphyry copper-gold project on a 42 square kilometres exploration license.
date, drilling at KMC has identified extensive copper-gold skarn, gold
skarn, and gold-bearing siliceous breccias in several locations. EurOmax
believes one or multiple buried porphyry intrusions, perhaps also
mineralized, may be the source for these widely occurring mineralized
"Our Serbian property has the most upside potential from an exploration perspective," EurOmax's Gustafson says.
the recent sale of Thrace Resources in Bulgaria and the $3.8 million
raised from a private placement in January, EurOmax has enough financial
resources for this year's drilling campaign.
"Between the sale
and January private placement, all of our exploration announced this
year is funded. Any additional development at Illovitza would require
financing but our 2012 program is fully funded."
Gustafson also says the company plans to add to its portfolio of assets in Bulgaria, Serbia and Macedonia.
"We will announce some additional prospects later in the year," he adds.
terms of updates, final drill results from Trun are expected in early
July, and over the summer and fall, EurOmax will proved further drilling
updates on Ilovitza and KMC.
When asked on his outlook for gold
and copper, EurOmax’s Gustafson is "not quite as bullish as others" and
sees prices for gold and copper north of $1,500 and $3 a pound,
respectively, but sees "pretty good" overall demand for the basic