Bauxite (Al)

[Tackler]

Navasota acquiring Societe AMIG Mining Int'l

2007-04-30 14:56 MT - Acquisition

The TSX Venture Exchange has accepted for filing an option agreement dated Feb. 28, 2007, between Navasota Resources Ltd. and Societe AMIG Mining International SARL. Pursuant to the option, the company has been granted an option to acquire up to 100 per cent of the issued share capital of AMIG. AMIG is the legal and recorded holder of a mineral exploration permit granted by the Ministry of Mines and Geology of the Republic of Guinea on May 10, 2006, covering two contiguous areas totalling 1,064 square kilometres, located in the prefectures of Telemele and Gaoual of the Republic of Guinea, for the exploration of bauxite.

The total compensation payable by the company to AMIG is:

1. $350,000 (U.S.) cash and $2-million (U.S.) work expenditures within three years to acquire an initial 45 per cent of the issued share capital of AMIG;
2. one million company shares, together with all expenditures necessary to deliver a feasibility study, to acquire an additional 6 per cent of the issued share capital of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG from 45 per cent to 51 per cent); and
3. $15-million (U.S.) and 15 million company shares to acquire all remaining issued shares of AMIG, exercisable at any time after it has acquired the initial 45 per cent of the issued share capital of AMIG.

For further details, please refer to the company's press release dated March 15, 2007, available on SEDAR.