www.euromaxresources.com
EUROMAX RESOURCES LIMITED is a Canadian company focused on gold and copper exploration in the resource rich region of Bulgaria, Macedonia and Serbia. Our technical excellence, local expertise and international contacts have made us one of the most successful exploration companies in Southeastern Europe.
Our aim is to explore high-quality, potentially world class gold and copper systems, then partner with local or international companies that have the financial and technical resources to develop them, thereby generating long-term value for EurOmax shareholders.
ISS recommends EurOmax shareholders vote for management in ongoing dispute
Canadian minerals company EurOmax Resources Ltd (TSX-V: EOX) has today announced that Institutional Shareholder Services (ISS), formerly RiskMetrics, a company that provides analytic services for shareholder disputes, has recommended that shareholders vote in support of the management director nominees against Anthony Patriarco, EurOmax`s biggest shareholder with an 18.4% stake, and his team of dissidents.
In ISS` report, it notes that the dissidents have not provided a business plan. The corporate governance company has challenged the claims and concerns put forward by the dissidents, namely the rapid depletion of the EurOmax treasury following the sale of the Bulagou property in China to the Chenzhen Mining Group for $14.9 million in July 2009; the significant decline in the EurOmax stock price since October 2009 and the return to price levels that existed prior to the merger with Silk Road, which was completed in June 2009; and the failure of the current board of directors to identify and hire a chief executive officer since the former CEO John Menzies was replaced by interim chief executive Christopher Serin.
“Considering the small float and limited liquidity, it is plausible that Patriarco’s sales (Jan. 6 to Mar. 31) could have negatively impacted the share price, particularly given that his trades accounted for a large percentage of total volume during that time period (when EOX declined from the $0.30 range to the $0.20 range), as pointed out by management…the stock price has apparently been impacted by multiple factors, not all of which are under management control,” the report stated.
Shareholders are encouraged to give management more time to implement their strategy to create value, it said. According to ISS, the board has carried out exploration activities as announced and appears to be “executing a reasonable plan”.
Interim CEO and director of EurOmax Christopher Serin commented: “Shareholders need to vote their blue proxy today to protect their investment and enable their board and management team to create wealth for shareholders. Alternatively, shareholders can let Mr. Patriarco take control of the company, with no plan, a weak team and a proposed CEO with no exploration or Balkan country experience.”
If shareholders vote in favour of the dissidents at a meeting to be held in Vancouver on 24 August, John Nugent will become the new chairman of the company, while Mark Gustafson will be appointed the new CEO.
Management`s director nominees include Robert Power, Christopher Serin, David Bell, Michael Mason, John Cook and Dimitar Dimitrov.
EurOmax is a company with precious and base metal projects in southeastern Europe. Its objective is the discovery of major metal deposits and participation in their development.
