EurOmax Resources (TSX-V:EOX) has taken full ownership of its KMC early-stage copper-gold property in Serbia, the Vancouver company announced Tuesday.
The company said a “major international mining company” decided to forego its option to acquire a 70% interest in the project in return for 2% for net smelter returns, if the company begins producing copper and gold at the property.
"This is a significant milestone for EurOmax," commented Mark Gustafson, EurOmax’s president and CEO.
"Elimination of this back-in right allows us better control over exploration and development activities at KMC, including this year's aggressive geophysical and drilling program."
KMC is one of four precious and base metals properties the company is exploring in the Balkans.
The change of control at KMC comes a year after the company was embroiled in one of the most vicious fights for control of a Howe Street resource venture in recent years. (See: “EurOmax fate unclear after dissident vote” – issue 1088; August 31 - September 6, 2010.)
At the time, a team of dissident shareholders accused the company of burning through its cash reserves.
Several votes were cast and the fight wound up in B.C. Supreme Court before the dissidents won and Gustafson was installed as the company’s new CEO.
Since then, the company has raised money to continue funding exploration in the Balkans. Its board of directors were re-elected June 1.
At press time, EurOmax’s shares were unchanged at $0.30.
Joel McKay
Twitter:jmckaybiv