You will see below that the PP has been extended to March 3rd.
I would expect that there will be some good news in the meantime, or maybe shortly after.
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Bomax Resource Corp - News Release
Agreement to acquire Surinam Stone & Industries filed with VSE; debt settlement
Bomax Resource Corp
BXS
Shares issued 6552701
1997-02-03 close $0.48
Tuesday Feb 4 1997
News Release
Mr James Bond reports
The agreement whereby the company would acquire all of the issued and
outstanding shares of Surinam Stone & Industries NV was filed with the VSE
January 20 1997 for regulatory approval.
As consideration for the SSI
shares, the company proposes to issue to the SSI shareholders up to
25,500,000 fully paid and non-assessable shares at a deemed price of $0.40,
being a price negotiated by the company and David Krenbrink of Tucan
Investments during August 1996. The average closing price of the company's
shares during August 1996 was $0.334375 per share.
The major assets of SSI are its contract with Grasshopper Aluminum
Company, NV, a company wholly owned by the government of Surinam, for
the exploitation and marketing of granite blocks from the Patamacca granite
deposit in Surinam and an exclusive world-wide sales agreement related to
the granite quarrying operations of SSI. Other assets of SSI consist of a
contract for the supply of shot-rock and a pending road building contract.
Although these other assets have value, they are not material compared to
the value to be generated from the exploitation and marketing of granite
blocks. SSI also carries on other industrial activities such as road building,
clearing and rock blasting,
The Patamacca granite deposit is approximately 130km east of Paramaribo,
the capital of Surinam, and about 35km south of Moengo. The deposit
consists of grey-blue granite which is suitable for exploitation for ornamental
stone production. It is characterized by a geological-morphological and
logistical context favourable for the creation of a substantial industrial
quarry.
A valuation report dated June 1996 indicates that the net present value of
SSI in the granite quarry is US$8.0 million. This does not account for the debt
of approximately US$500,000 owing to the company. Consequently the value
of SSI would be approximately US$7.5 million.
At the annual general meeting rescheduled for March 1997 approval from
the shareholders of the proposed SSI transaction will be sought.
As well, certain creditors of the company have agreed to negotiate the
settlement of certain outstanding accounts payable in the amount of
approximately $175,000 by the issuance of up to 350,000 shares, at a
deemed price of $0.50.
The private placement reported in Stockwatch November 22 1996 of up to
2,500,000 shares at $0.40, with up to 2,500,000 warrants exercisable for one
year at $0.40 has been extended to March 3 1997. This is a non-brokered
private placement and no finder's fees are payable. The proceeds will be
used for general working capital and for the development of the Patamacca
granite quarry in Surinam.
(c) Copyright 1997 Canjex Publishing Ltd.
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