Euromax Announces Proposed Private Placement

Executive Summary

• Euromax Resources Ltd. announced a proposed non‑brokered private placement of up to 122,096,357 common shares at $0.0325 CAD per share, targeting gross proceeds of approximately C$3.97 million (US$2.81 million).
• The offering is expected to be funded primarily by insiders and other investors; it is not anticipated to materially affect control of the company.
• Proceeds are earmarked for operating costs—including salaries, office administration, legal fees, finance costs, project working capital, and tax/accounting expenses—with specific percentages allocated to each category.

Key Details

• Offering Size: Up to 122,096,357 common shares.
• Price per Share: $0.0325 CAD (US$0.02299).
• Maximum Gross Proceeds: C$3,968,132 (approximately US$2,807,508).
• Proposed Placees: Expected to include one or more insiders and other qualified investors; no change in control anticipated.
• Use of Proceeds Allocation:
• Office, administration & communications – 20%
• Salaries – 31%
• Legal & administrative fees – 18%
• Finance costs – 7%
• Project working capital – 9%
• Tax, audit & accounting fees – 15%
• Special Allocations:
• Up to 6% of proceeds may fund normal salary payments to non‑arms‑length parties.
• Up to 5% may be used for investor‑relations activities as permitted under TSXV policy.
• Regulatory Exemptions: The company will rely on MI 61‑101 exemptions (sections 5.5(b) and 5.7(1)(a)) due to related‑party placees, avoiding formal valuation and minority‑shareholder approval requirements.
• Resale Restrictions: All securities issued will be subject to a four‑month resale restriction imposed by the TSX Venture Exchange, in addition to any applicable Canadian securities law restrictions.
• Closing Conditions: Completion is subject to TSXV acceptance of the terms and customary closing conditions; no guarantee that the offering will close or that proceeds will be sufficient for the stated uses.

Notable Quotes

(No executive quotes were included in the release.)