Canadian Company Euromax Drills for Gold in Bulgaria

Euromax suggested that there were over 1 million tons of ground to be sifted in the Bresnik reserve. Photo by abc.net.au

Canadian company Euromax Resources Ltd. has started drilling for gold near the Bulgarian towns of Breznik and Trun, an official company press release reported Wednesday.

Euromax reported that it is now evaluating the potential of both deposits “for exploitation of the higher grade material with a low impact underground mining operation.” The company suggested that there were over 1 million tons of ground to be sifted to find gold and silver in the Bresnik reserve.

In March 2009 Australian mining company International Resource Holdings (IRH) agreed to sell its stakes in its two Bulgarian projects to Martern, a unit of Canadian mineral exploration firm Euromax Resources.

Euromax thus became the new owner of IRH's units in Bulgaria after agreeing to buy them at a price of USD 112 000, which equals half the value of the funds invested by Martern in the projects under a convertible note agreement signed by the two companies in December 2008.

Under the terms of the deal, International Resource Holdings sold Thrace Resources, its wholly-owned unit in Bulgaria, following an evaluation of its financial position and the economic environment.

Euromax bought the gold and silver drilling licences for the Rakitovo and Breznik deposits, in southern and western Bulgaria, respectively.

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