WEDNESDAY, NOVEMBER 24, 2010 – VANCOUVER, B.C., CANADA, Maxim Resources Inc., (Maxim), (TSXV:MXM Frankfurt:M5H OTCBB: MXMSF), is pleased to announce that, subject to regulatory approval, it has received a Letter of Intent, (LOI), from Jasmin Oil & Gas Limited, (Jasmin), for Maxim to acquire 100% of the shares of Jasmin.
Jasmin, a privately held company registered in Trinidad and Tobago, has entered this LOI based on the full agreement of the shareholders of Jasmin. At this time, the conditions of the LOI are in the process of being satisfied and the four shareholders representing 100% of the shares of
Jasmin have agreed to sell their positions to Maxim.
Maxim presently has 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 by 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 a further 42 wells to be drilled. Present production is approximately 200 barrels of oil per day of medium grade crude.
Maxim will pay the shareholders of Jasmin $4.6 million USD and a Convertible Debenture for $6 million USD. The conversion price will be $0.50 per share, with resale restrictions yet to be determined.
The LOI is subject to terms and conditions that have yet to be fully satisfied. In concert with the LOI, both Maxim and Jasmin will agree to enter into definitive agreements prior to the removal of the conditional clauses of the LOI. The ensuing agreements will then be subject to the approval of the TSX Venture Exchange, (TSXV). Finders fees may be payable in accordance with the TSXV policies as well.
Issued on behalf of the Board of Directors of
Maxim Resources Inc.
President & CEO
(604) 630-0280 or toll free at 1-888-882-8891
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.