NAXOS RESOURCES LTD.
409 - 808 Nelson Street
Vancouver, B.C., Canada
V6Z 2H2
(604) 669 - 8078
N E W S R E L E A S E (97-18)
Trading Symbol: NAXOF:OTCBB Date: October 9, 1997
Naxos Gains Exclusive Option on Patent Pending Technology that Assays and Recovers Precious Metals from the Franklin Lake Playa, CA
The Board of Directors of Naxos is pleased to announce that on October 9, 1997, an exclusive option was signed with Johnson-Lett & Company that Naxos believes is a necessary first step in the delineation of reserves and addresses economic recovery of the material from Franklin Lake. Initial testing results of this new technology are encouraging. Assays on chain of custody Franklin Lake material are currently being conducted at Ledoux & Co. Laboratories, a world referee laboratory for precious metals.
The agreement is a staged agreement. The salient points are as follows:
1. Upon the signing of the agreement, Naxos will pay Johnson-Lett US$250,000 for the exclusive right to evaluate the new technology over a period of 210 days.
2. During the 210-day period Naxos may elect within 90 days to pay another US$250,000 plus 2 million restricted shares to earn permanent rights to use the Johnson-Lett assaying methodology.
3. During the 210 day period Naxos may further elect to purchase the exclusive rights to use this technology for recovery. To purchase these rights Naxos must pay an additional US$4.5 million and 8 million restricted shares to be paid to Johnson-Lett. Naxos will gain all rights, titles and interests in the Johnson-Lett assaying and recovery technology as well as that of the assaying technology will become exclusive - only Naxos, a majority owned subsidiary or a joint venture in which Naxos owns 50% or more ownership may use it. In addition, Dr. Johnson agrees to use his best efforts to improve the assaying and the recovery technologies, and will assign all future titles, rights and interests in these improvements to Naxos. If Naxos exercises all its options to acquire the exclusive world-wide rights to this technology the total consideration is US$5,000,000 and 10,000,000 restricted shares.
4. During this 210-day period, Dr. Johnson may enter into a consultant agreement with Naxos, upon the agreement of both parties.
5. The 10 million restricted shares held by Johnson-Lett will be assigned in irrevocable proxy to Jimmy John to vote, as long as Mr. John is CEO of Naxos.
6. At the following Annual General Meeting, Naxos management will nominate two designees of the Johnson-Lett group for election to the board of directors.
Dr. A.C. Johnson received his Ph.D. in Geology and Geochemistry from the University of Michigan in 1964. He has worked with and consulted for companies such as Shell Oil, American Metal Climax, Chevron Resources, Rand Mines, Gulf Oil, Phillips Petroleum, Texaco, Phelps-Dodge, etc. In the summer of 1978 he began working with refractory (complex) type precious metals ores. He is married with seven children.
Mr. A. Lett received a Masters Degree in Finance from the University of Michigan in 1971. He is a financier who has funded research on refractory (complex) ores for the last eleven years. He is co-founder and a partner of Bollinger/Wells, a merger and acquisitions company. Before that he was Treasurer and Director of Corporate Development and Strategic Planning of McGraw-Edison Company in Elgin, Illinois. Previous to that he was Corporate Finance Officer and Head of Mergers and Acquisitions at First National Bank of Chicago. He was a Lt. Commander in the United States Navy, and an assistant professor of engineering at the University of Michigan. He is married with two children.
Naxos believes that this agreement will augment shareholder value. Both the assaying and the recovery methods extract, rather than just detect precious metals from the Franklin Lake material. Through these processes Naxos will begin creating inferred reserves.
The blackout on insider and employee trading of shares will continue until assays on chain of custody Franklin Lake drill samples are reported by Ledoux & Co.
Venezuela
The company is pleased to announce that the small alluvial mechanical plant has been completed and is currently operational on the Hoyada Diamond Project. The first 35 cubic yards processed by the plant graded 0.7 carats per yard. These diamonds were appraised in Venezuela at an average of US$190 per carat on rough un-cut diamonds. 75% were gem quality, with the remaining 25% being of industrial quality. Further steps are being taken to increase production on the mill to 35 cubic yards per day. These modifications are anticipated to be completed next week. Following these additional changes, work will begin on a much larger mechanical plant, which is partially completed on the property.
Mr. John Norton of the Republic of South Africa, has been hired as Mining Manager for the Company with immediate responsibilities to oversee the Venezuelan operations. He has been a Plant Superintendent, a Production Supervisor, a Metallurgical Manager, dealing with platinum, gold, uranium, and base metals. He has worked in diverse places such as Ghana, South Africa, Peru, Tanzania, Zaire, the Middle East, India, U.S.S.R., Zimbabwe, Mali and Venezuela. He has been employed by Metallurgical Design and Management Ltd., Monarch Resources Venezuela, Severin Mining and Development, Westrand Consolidated Mining Co., Impala Platinum Refineries among others during his 17 year mining career. He has been involved in several projects that began with grass roots feasability and ended up in production.
Following a complete review resulting in modification to the Company's Km. 88 mill by Mr. Norton, the plant is scheduled to resume full operations tomorrow.
DATED at Vancouver, British Columbia, the 9th day of October, 1997.
ON BEHALF OF THE BOARD
NAXOS RESOURCES LTD.
Per: "Jimmy John"
Jimmy John
President & CEO
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 realised. For further information, please contact our Investor Relations' Department at (603) 891-5743 or (702) 372-1712 or (913) 894-8509. |
