Trafigura Group, through its subsidiary Galena Resource Equities Limited, has increased its investment in Euromax’s Ilovica – Shtuka Copper Project by an additional US$ 6.9 million. The investment is being made through Euromax Resources Ltd which is a Canadian company listed on Toronto Stock Exchange.
Trafigura’s investment was encouraged by the support Euromax is receiving from the local community, the constructive steps being taken by the Macedonian Government and the country’s progress to entry into NATO – a strong positive signal for foreign investors.
Trafigura brings a wealth of experience having built and operated mines all over the world. Trafigura has done detailed technical and legal due diligence of Euromax and the Ilovica-Shtuka Project over the past twelve months and has confirmed that it is legally compliant with all of Macedonia’s Law and has been designed to the level of best international operating practice, environmental and health protection.
Over a year ago, Euromax made a decision to remove the cyanide from the ore processing is in full compliance with the recently passed Law Amendments to the Minerals Law.
Trafigura is ready to lead the Project forward through to construction to unlock its value to the local community and other key stakeholders. The additional investment will be used for further development, technical and permitting work which will allow some initial additional employment.
“The beginning of NATO integration process and the progress in EU integration have increased investor confidence in our project. This positive signal was strengthened by the Government’s pro-active interest in the Ilovica-Shtuka project and its latest stakeholder engagement activities which we welcome. We decided to give up using cyanide and the new funds will be directed towards further technical development of our project and to support the continued engagement with the community. When the Project becomes operational it will significantly contribute to the development of the national economy, especially in the region where it is located. We look forward to continuing the work together with the community.” said Euromax Resources’ CEO Varshan Gokool.
With a budgeted EUR 343m in capital investment for construction alone, this project will be the largest Greenfield investment in the country and is estimated to bring a significant boost to economic growth.
With over U$180 billion in revenue in its 2018 financial year, Trafigura is one of the world’s leading independent commodity trading and logistics houses with significant mining experience at the heart of the global economy. Trafigura is committed to meeting the highest standards right across the supply chain, and puts health, safety, environmental and community issues at the forefront in its planning and decision making.
In addition to Trafigura, Euromax’s shareholdrs and creditors include prestigious international names such as the European Bank for Reconstruction and Development, the British investment fund Ora Capital, US investment fund Equinox partners, Investec Bank and together with a management and board team with over 200 years’ experience in the mining sector.