Naxos Resources to Sell Shares in Subsidiary
VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 1, 1998-- Naxos Resources Ltd. (OTC BB:NAXOF), announced today its offering of shares in the Company's wholly owned subsidiary, Naxos Resources (U.S.A.) Ltd. The offering consists of 12,000,000 units at a price of US$0.75 per unit. Each unit consists of one share and one special warrant. Each special warrant is exercisable within one year of the date of the closing of the offering at a price of US$1.25 to obtain a further share and another warrant which is exercisable within two and a half years of the date of the closing of the offering at a price of US$2.00 to obtain a further share.
When fully subscribed, the offering will result in the reduction of the Company's interest in Naxos Resources (U.S.A.) Ltd. to forty percent. Naxos Resources (USA) will consist of the Franklin Lake project, including the P+K, SKS and FLL claims, Arcan claims and its property and facility.
The offering, unless extended by management, will be open for a period of 30 days from September 30, 1998.
The Company intends to use the proceeds from the sale of the Naxos Resources (U.S.A.) Ltd. shares to increase working capital and to find and develop mining properties with proven reserves and long-term potential.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be sold in the U.S. absent registration or an applicable exemption from the registration requirements.
Formed in 1986 as a precious metals and development company, Naxos Resources owns mining projects in Venezuela and California.
ON BEHALF OF THE COMPANY NAXOS RESOURCES LTD. Per: ''Signed'' Sidney W. Kemp President
All forward-looking statements made by Naxos involve material risks and uncertainties and are subject to change based on factors beyond Naxos' control. Accordingly, Naxos' future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, without limitation, those described in Naxos' filings with the United States Securities and Exchange Commission. Naxos does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
------------------------------------------------------------------------
Contact:
Naxos Resources Ltd.
Investor Relations:
Jeff Sharp, 913/894-8509
Russell Smith, 603/891-5743
------------------------------------------------------------------------
More Quotes and News:Naxos Resources Ltd (OTC BB:NAXOF - news)Related News Categories: mining/metals
------------------------------------------------------------------------
|
