I hesitate to put this here...because I think now is a great time to accumulate under $ 1.00, but here goes anyway.
This is the big news that's been awaited for about 2 years. The road is plowed and there's gas in the car....
Bomax Resource Corp - News Release
Surinam Stone acquired; private placement
Bomax Resource Corp BXS
Shares issued 6,552,701 Nov 21 close $0.47
Thu 21 Nov 96 News Release
Mr James Bond reports
The formal agreement whereby the company would acquire all of the issued
and outstanding shares of Surinam Stone & Industries NV has been executed.
As consideration for the SSI shares, the company proposes to issue to the
SSI shareholders a total of up to 25,500,000 fully paid and non-assessable
shares of its capital stock at $0.40, being a price negotiated by the
company and Mr David Krenbrink of Tucan Investments during the month of
August 1996. The average closing price of the company's shares during the
month of August 1996 was $0.334375 per share.
The sole shareholder of SSI is Tucan Investments, which is owned by Mr
David Krenbrink, Mr Hans de Graf, Mr Hugh Maddin, Mr Luigi and Ms Rita
Bordignon, Mr Bernie Malach and Mr Richard Hoffman.
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 130km east of Paramaribo, the capital of
Surinam, and 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 and prepared by Ross Glanville &
Associates of Burnaby, 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
US$500,000 owing to the company. Consequently, the value of SSI would be
US$7.5 million.
The company has called a general meeting of members for January 27 1997, at
which approval from the company's 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
$175,000 by the issuance of up to 350,000 shares, at $0.50 per share.
A private placement has been arranged of up to 2,500,000 shares at $0.40
per share, with up to 2,500,000 warrants, exercisable for one year at
$0.40. 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. |
