Euromax Resources Announces Debt Settlement with Major Shareholder Galena.
The agreement will see Euromax issue over 43 million common shares to settle a US$475,000 debt, a move the company says will preserve cash for its ongoing operations.
Euromax Resources Ltd. has reached an agreement to settle an outstanding debt of US$475,000 with one of its major shareholders, Galena Resource Equities Limited. The settlement will be fulfilled through the issuance of 43,747,183 common shares in the company, Euromax announced Tuesday.
The debt stems from a non-interest bearing, unsecured promissory note issued to Galena in April 2025. The new shares will be issued at a deemed price of C$0.015 per share.
Euromax’s board of directors stated that converting the debt to equity is in the best interest of the company, as it will help preserve cash for its operational needs. Euromax is currently focused on the development of the Ilovica-Shtuka gold-copper project in North Macedonia.
The completion of this transaction is subject to standard closing conditions, including the final approval of the TSX Venture Exchange. The newly issued shares will be subject to a hold period of four months and one day from the date of issuance.
Galena, which is controlled by Galena Asset Management S.A., an affiliate of Trafigura Pte Ltd., is considered a “related party” to Euromax. Prior to this agreement, Galena held an approximate 53.27% ownership interest in Euromax. Following the transaction, Galena’s beneficial ownership will increase by approximately 2.55% to a total of 55.82%, a change that is not expected to materially affect control of the company.
Euromax has indicated its intention to rely on exemptions from formal valuation and minority approval requirements under existing securities regulations for this transaction.
