Maxim Resources announces details on JV Agreement with LGO
Toronto, Ontario - August 12, 2013 - Maxim Resources Inc. ("Maxim" or the
"Company") (TSX V: MXM Frankfurt: MSH OTCBB: MXMSF) announces an update to
the proposed transaction (the "Proposed Transaction")between the Company
andLeni Gas & Oil plc ("LGO"), whereby Maxim and LGO will work together to
jointly pursue oilfield development opportunities in the Republic of
Trinidad and Tobago ("Trinidad").
Further to Maxim's press releases of March 14, 2013 and May 23, 2013, and
after further discussions between Maxim and LGO, the terms of the Proposed
Transaction have been amended and shall consist of:
(a) the cash payment of Cdn$75,000 previously paid by LGO to Maxim upon the
execution of the heads of agreement with respect to the Proposed
Transaction;
(b) the issuance by Maxim to LGO of: (i) 16,666,666 common shares in the
capital of Maxim (each, a "Maxim Share") at a price of $0.12 per Maxim Share
on the date of closing of the Proposed Transaction (the "Closing Date"), and
(ii) 4,166,667 Maxim Shares at a price of $0.12 per Maxim Share following
completion of the transactions contemplated under paragraph (d), below;
(c) on the Closing Date, either: (i) a cash payment of Cdn$1,925,000 by LGO
to Maxim on the date of closing of the Proposed Transaction (the "Closing
Date"), or (ii) the issuance by LGO to Maxim, on the Closing Date, of that
number of free-trading ordinary shares in the capital of LGO (each, a "LGO
Share") equal to a value of Cdn$1,925,000, with the price per LGO Share
being equal to the closing mid-market price of the LGO Shares on the trading
date immediately preceding the Closing Date, with such method of payment to
be determined by the parties prior to the date of payment; and
(d) should Maxim gain effective control, either directly or indirectly, of
the South Erin Field in Trinidad, through Jasmin Oil and Gas Limited
("Jasmin"), either: (i) a cash payment of Cdn$500,000 by LGO to Maxim at
such time, or (ii) the issuance by LGO to Maxim of that number of LGO Shares
equal to a value of Cdn$500,000, with the price per LGO Share being equal to
the closing mid-market price of the LGO Shares on the trading date
immediately preceding the date of issuance, with such method of payment to
be determined by the parties prior to the date of payment. This will then
bring the total invested by LGO into Maxim to Cdn$2.5 million.
The execution of the definitive agreement in respect of the Proposed
Transaction is expected to occur on or around August 15, 2013, or such other
date as mutually agreed between the parties. The Closing Date expected to be
on or around September 6, 2013, or such other date as mutually agreed
between the parties. Other terms of the Proposed Transaction and the Joint
Venture (as defined in the Company's press release dated May 23, 2013)
remain unchanged from the terms disclosed in the Company's press release of
May 23, 2013.
Further information with respect to LGO, including its most recent annual
report, can be found on LGO's website at www.lenigasandoil.com.
The Proposed Transaction is subject to customary due diligence by the
parties, the successful negotiation and execution of definitive agreements
between the parties, and the receipt by each of Maxim and LGO of all
requisite regulatory approvals, including without limitation the approval of
the TSX Venture Exchange.
About Maxim
Maxim is a junior oil and gas production and exploration company based in
Vancouver, Canada. Maxim presently holds, through New Scotland Oil and Gas
Limited, a 69% Net Revenue Interest in exploration and production of Jasmin
within the South Erin Block, which cover 1,350 acres. After payout of the
investment to Maxim, the Net Revenue Interest will reduce to 41%. Jasmin has
drilled 5 wells to date and the exploration licenses for this Block allow
for up to a further 42 wells to be drilled.
On behalf of the Board
"Arthur Brown"
Arthur Brown
President and CEO
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Maxim Resources Inc.
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CODE : MXM.V |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Maxim Res. is a and oil exploration company based in Canada. Maxim Res. develops natural gas in Australia. Its main asset in production is SELLHEIM GOLD in Australia and its main asset in development is SOUTH ERIN BLOCK in Australia. Maxim Res. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 292 050 as of today (US$ 218 813, € 209 404). Its stock quote reached its highest recent level on December 30, 2005 at CA$ 1.10, and its lowest recent point on December 16, 2016 at CA$ 0.01. Maxim Res. has 58 410 000 shares outstanding. |