Euromax ResourcesLtd. said April 8 that it secured an investment of up to US$30 millionto fund the development of the Ilovicagold project in Macedonia.
Under a term sheet signed, CC Mining SA or a related entity will provide funding ofup to US$30 million in three tranches.
A primary convertible loan tranche will be conducted on or beforeApril 30, of C$5.2 million, with the loan maturing May 30, 2018, and convertibleto shares at 40 Canadian cents apiece. The loan will bear interest at 9% per annum.
A secondary equity tranche will be conducted on or before Dec.31 consisting of a US$5 million equity subscription, to be conducted in tandem witha third subordinated loan tranche consisting of a 10-year subordinated, securedloan facility of up to US$20 million at an interest rate of six-month LIBOR plus8% per annum.
Upon subscription of the convertible loan, the Consolidated ContractorsCo. Group — of which CC Mining is an investment vehicle — will assist Euromax inthe definition, establishment and implementation of construction projects at Ilovica.
As long as CC Mining owns more than 5% of Euromax, it will beentitled to nominate a director.
The proceeds from the convertible loan shall be used to fundpredevelopment work, including the front-end engineering design and further optimizationstudies for Ilovica. Proceeds from the secondary equity tranche and subordinatedloan are expected to go toward construction activities at Ilovica.