FRIDAY, June 25, 2010 – VANCOUVER, B.C., CANADA, Maxim Resources Inc., (“Maxim” or the “Company”), (TSXV: MXM Frankfurt: M5H OTCBB: MXMSF), announces that at the Annual General and Special Meeting of the shareholders of Maxim held on June 2, 2010, the shareholders approved a special resolution permitting the Board of Directors to complete a share consolidation on the basis of one new postconsolidation share for up to every existing 10 pre-consolidation shares.
The Board of Directors have determined to complete a share consolidation of one new post-consolidation share for every existing 4 pre-consolidation shares, subject to
regulatory approval, including approval of the TSX Venture Exchange. Where the exchange results in a fractional share, the number of shares will be rounded to the
nearest whole common share. The consolidation is to be effected as soon as practicable, with the record date for the consolidation being set following the receipt of all required regulatory approvals. Maxim currently has a total of 70,487,966 common shares issued and outstanding. In the event the required regulatory approvals are obtained, following the consolidation there are expected to be 17,621,992 post-consolidation shares outstanding. The name of the Company will not be changed in connection with the consolidation. The Board of Directors believes that the consolidation is necessary to enhance the marketability of the common shares as an investment and to facilitate future financings to fund operations.
Maxim would also like to clarify the disclosure in the Company’s news release dated June 9, 2010, issued in connection with the acquisition of a Trinidad based on-shore oil producer. In connection with the purchase, Maxim agreed to grant the vendors a 4-percent gross overriding royalty in perpetuity on production from the currently producing property. Maxim has taken this action with a view to the upcoming financing required to complete the acquisition of an existing onshore producer. Maxim is intending to acquire 100% of the share capital of the company and the purchase price is $10,600,000. A further drill program is being contemplated at this time as well and this will require additional financing.
About Maxim – Maxim presently holds an indirect net revenue interest in five producing wells in Trinidad which provides for 69% of net revenues until payout and 41% of net revenues after payout. In addition, Maxim has an option to participate in an ongoing drill program of up to 42 wells over a land base in excess of 1000 acres, subject to all required approvals from Trinidad regulatory authorities.
Issued on behalf of the Board of Directors of
Maxim Resources Inc.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward‐looking information. All statements included herein, other than statements of historical fact, is forward‐looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward‐looking information and a description of risk factors that may cause actual results to differ materially from forward‐looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward‐looking information except in accordance with applicable securities laws.