Euromax Resources Ltd., Vancouver 8th December 2015 (TSX-V: EOX, OTCPK: EOXFF): (“Euromax” or the “Company”), is pleased to announce that it has entered into a term sheet for the offtake of its copper-gold concentrate production from its Ilovica mine in Macedonia with Aurubis AG, Hamburg, Germany (“Aurubis”).
Further to Company’s announcement of the 1st May 2015, in which the Company announced the receipt of in-principle eligibility from the UFK, (Garantien für Ungebundene Finanzkredite), to support the project finance on the assumption that a copper concentrate offtake agreement would be entered into with a German owned smelter, the Company has progressed discussions with Aurubis and specifically the delivery of its copper-gold concentrate to Aurubis’s Pirdop plant in Bulgaria.
Subject to the requirements of the UFK, the Company has agreed to sell up to 100% of the copper gold concentrate from its Ilovica Project for up to 10 years at market standard terms to Aurubis. Delivery will be made DAP (as per Incoterms 2010) to the Pirdop Smelter.
The Company was advised on the offtake term sheet by Cliveden Trading AG.
Commenting on this arrangement, Varshan Gokool, CFO commented:
“The strength and reputation of the Aurubis Group is well known in the copper concentrate market and we are delighted to have entered into this long term relationship with Aurubis. The Euromax technical team and I visited the Pirdop Smelter earlier this year and were extremely impressed by the facility. The proximity of the smelter, combined with the enhancements to our finance plan through the UFK support, is one of the strong economic advantages of the Ilovica Project. The signing of this term sheet will allow us to now rapidly progress with the UFK negotiation and the project financing we announced in May this year.”
Commenting on this arrangement, Christophe Koenig, Senior Vice-President Supply Chain Management, Aurubis commented:
“We are very pleased to have Euromax Resources with its promising Ilovica project as a significant future supplier of copper concentrates to Aurubis and thus, we look forward to a long term and mutually beneficial relationship.”
About Euromax Resources Ltd.
Euromax has a major development project in Macedonia and an exploration services company in Bulgaria. We are focused on building and operating the Ilovica copper/gold project in Macedonia, as well profitably deploying the wealth of exploration experience within our Bulgarian Exploration Services subsidiary.
About Aurubis AG
Aurubis is the leading integrated copper group and the world’s largest copper recycler. We produce some 1 million tonnes of copper cathodes each year and from them a variety of copper products. Production expertise is our strength and the driving force of our success.
Thanks to our wide range of services, we rank among the global leaders in our industry. Our core business is the production of marketable copper cathodes from copper concentrates, copper scrap and recycling raw materials. These are processed within the Group into continuous cast wire rod, shapes, rolled products and strip as well as specialty wire made of copper and copper alloys. Precious metals and a number of other products, such as sulfuric acid and iron silicate, round off our product portfolio.
Customers of Aurubis include companies in the copper semis industry, the electrical engineering, electronics and chemical industries as well as suppliers of the renewable energies, construction and automotive sectors. Aurubis is oriented to growth and to increasing corporate value: the main focuses of our strategy are on expanding our leading market position as an integrated copper producer, utilizing growth opportunities and practicing a responsible attitude when dealing with people, resources and the environment.
Aurubis shares are part of the Prime Standard Segment of the Deutsche Börse and are listed in the MDAX and the Global Challenges Index (GCX).