MACEDONIA – Euromax Resources of Vancouver has sold at portion of the gold stream from its Ilovitza copper-gold project to a subsidiary of Royal Gold for US$175 million. The money will be used to fund the construction of a bulk tonnage open pit mine and conventional concentrator.
The streaming agreement calls for Euromax to deliver physical gold in an amount equal to 25% of Ilovitza production until 525,000 oz have been delivered to Royal Gold. After that the stream falls to 12.5% for the life of the mine. Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London gold price, and it will apply the balance as a reduction against the US$175 million advance payment. No interest shall be payable on the advance payments.
Royal Gold will advance the funds in three phases. The first tranche of US$7.5 million will be available within 90 days of the signing of the formal agreement. A second tranche of US$7.5 million will be advanced on the first anniversary of the signing date. The final tranche, US$160 million, will be available to fund the capital cost of the project.
A condition of the funding is that Euromax raise at least C$5 million in equity, and the company has already arranged a conditional proposal.
Photos and additional information about the Ilovitza project are available at EuromaxResources.com.
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