EurOmax Resources closes $6.3 mln private placement, updates on new corporate focus

EurOmax Resources (CVE:EOX) said Thursday that it has closed its previously announced $6.3 million private placement.

The southeastern Europe-focused miner issued around 42 million common shares at a price of 15 cents each.

The company also updated on its new corporate focus, following the appointment of a new management team last month, and a strengthened board of directors.

New management team members include three former high-ranking members of European Goldfields' management team - Martyn Konig as non executive chairman, Steve Sharpe as president and CEO, and Varshan Gokool as CFO.

EurOmax announced Thursday that Tim Morgan-Wynne has been appointed to the board as a non-executive director, following the close of the private placement.

Morgan-Wynne was the CFO of European Goldfields until March 2012, and prior to this, he was a director of the Resources and Energy Group at HSBC Bank.

"I am delighted that we have kept the core of the ex-European Goldfields management team together," said Sharpe.

"The commitment to the private placement is a strong endorsement of the quality of the company's resource base, its development potential and the ability of management to drive the company forward with a view to ultimately filling the space in the European gold sector recently vacated by European Goldfields."

In December of 2011, Canadian gold mining company Eldorado Gold (TSE:ELD) (NYSE:EGO) announced the takover of London-based European Goldfields for C$2.5 billion.

European Goldfields has reserves in Greece at the Olympias and Skouries projects, and in Romania at the Certej project totalling 9.2 million ounces of gold.

EurOmax Resources is a Canadian mineral explorer that is advancing three core properties in Bulgaria, Serbia and Macedonia.              
                   
The company said Thursday that it believes that with the strengthened board and new management team in place, it now has "an enviable skill set" with which to implement a re-focusing of the company as a gold exploration and development company.

As part of this, EurOmax plans to implement a number of steps, including concentrating the company's attention on the development of its Ilovitza copper-gold project in Macedonia, and the establishment of a new London corporate office.

The company will work to upgrade the current resource at Ilovitza, as well as progress the permitting of the project and advance the site toward a pre-feasibility study - targeted for mid-2013.

The new corporate office in London is part of its plan to consider both a move to the senior board of the Toronto Stock Exchange, as well as a listing on the London Stock Exchange. The company said it is in the process of engaging with global financial institutions to assist in this analysis.
               
In addition to these steps, the company plans on advancing its Trun gold project in Bulgaria through the commercial discovery certificate permitting process in the second half of this year, following the completion of the drill program.

It also plans to complete the current drilling program at its KMC project in Serbia. At KMC, an 8,000 metre drill program is underway, with the company targeting a maiden NI 43-101 compliant resource estimate in 2013.

With the closing of the private placement, the company now has the funding required to implement its plans. The offering was more than fully subscribed by EurOmax's incoming directors and management team, institutional shareholders and others.