Euromax Secures Lifeline Funding Amidst Project Delays in Macedonia

VANCOUVER, BC – December 30, 2025 – Euromax Resources Ltd. (TSXV: EOX) announced today it has secured a crucial capital injection, closing the first part of a planned C$4 million private placement. The company raised nearly C$1.6 million by issuing over 48.8 million shares, with a second, larger tranche expected to close in January 2026.

While the financing provides much-needed cash, a closer look at the company’s plans reveals the funds are overwhelmingly earmarked for corporate overhead and salaries, raising questions about whether this is a stepping stone for its flagship project or a lifeline to navigate prolonged delays.

A Focus on Sustaining Operations

According to the company's announcement, the C$1.59 million in gross proceeds will be directed primarily toward maintaining corporate functions rather than direct project advancement. A staggering 84% of the funds are allocated to non-project expenses, including 31% for salaries, 20% for office and administration costs, 18% for legal fees, and 15% for tax and accounting.

Only 9% of the capital is explicitly designated for "project working capital" for its Ilovica-Shtuka gold-copper project in North Macedonia. The breakdown suggests the immediate priority is sustaining the company's corporate structure and covering essential expenditures while it continues to navigate a complex and protracted situation overseas. This allocation strategy is a stark indicator of the challenges facing junior miners with assets in development limbo, where preserving cash for operational runway becomes paramount. The financing appears less about breaking new ground and more about holding the line.

The Stalled Macedonian Prize

At the heart of Euromax's story is the Ilovica-Shtuka project, a large gold-copper deposit in North Macedonia. A 2016 Feasibility Study painted a rosy picture, outlining a project with a 20-year mine life, capable of producing an average of 83,000 ounces of gold and 16,000 tonnes of copper annually. The study projected a pre-tax net present value of US$513 million, signaling a potentially world-class asset.

However, the project has been mired in legal and administrative delays for years. Development, once slated to begin in late 2016, has never commenced. The primary obstacle has been the company's inability to secure the final exploitation permit, which is contingent on the merger of its two concessions. In July 2019, the situation escalated when the Macedonian government moved to unilaterally terminate one of the concessions.

Euromax has since been locked in a legal battle. While a lower administrative court rejected the company's lawsuit in 2024, it reportedly did not dispute that the legal conditions for the concession merger had been met. The company is now awaiting a decision from the Higher Administrative Court, leaving the multi-billion-dollar project's future hanging in the balance and dependent on either a favorable court ruling or a new approval from the government.

Insider Confidence and Market Questions

The private placement saw participation from one of the company's insiders, a move often interpreted as a signal of internal confidence in a company's long-term prospects. To facilitate the transaction, Euromax utilized exemptions under securities law (MI 61-101) that allow it to bypass the need for a formal valuation and a separate vote from minority shareholders.

This is not the first time the company has leaned on this financing structure. A similar non-brokered private placement was completed in November 2024, also with the participation of controlling shareholders and directors. While insider buying can be a bullish sign, a consistent reliance on related parties and regulatory exemptions to raise capital can also suggest challenges in attracting investment from the broader, arms-length market. For junior developers, it’s a delicate balance between demonstrating internal belief and proving wider market appeal.

A Precarious Financial Path

The need for this financing is underscored by Euromax's financial position. The company reported a net loss of C$2.60 million in its last quarter and operates with a negative equity of C$6.41 million against a debt of C$32.25 million. This difficult financial structure makes regular capital infusions not just strategic, but essential for survival. The company's stock, trading at just C$0.020 on the TSX Venture Exchange, reflects the high-risk, high-reward nature of its situation.

With the second tranche of the placement expected to bring in an additional C$2.38 million in January, Euromax will secure a runway to continue its administrative and legal efforts. However, the path forward for shareholders and the company itself remains intrinsically tied to the outcome of its long-standing dispute in North Macedonia. Until the permitting deadlock for Ilovica-Shtuka is broken, such financings will likely remain a recurring feature, serving as the critical fuel needed to keep the company's hopes for the project alive.