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- Euromax Resources released Pre-Feasibility Study results on June 5, 2014, causing the share price to soar in a few days from $0.12 to $0.75, an incredible rise of 525%.
- In general, these kind of spikes are short lived regarding junior miners.
- The Pre-Feasibility Study didn't really justify all the excitement in my view.
- At first sight, the Ilovitza project seems to be unfinanceable at the current commodity price.
- However, most investors are unaware the German state might back the debt issued by Euromax Resources as the company will sell its concentrate to a German company.
- That would be a game changer, and together with a (likely) royalty or streaming deal, the dilution for current shareholders should remain (relatively) acceptable.
- The team heading Euromax is the management team which sold European Goldfields to Eldorado Gold for $2.4B, and plans to repeat its success.