Maxim Receives LOI for Jasmine Acquisition
Maxim Resources has received a Letter of Intent (LOI), subject to regulatory approval, it , from Jasmin O&G (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.