Toronto, Ontario - (Accesswire - October 3, 2013) - Maxim Resources Inc. ("Maxim" or the "Company") (TSX V: MXM Frankfurt: MSH OTCBB: MXMSF) is pleased to provide an update to the Joint Venture and financing relationship with Leni Gas and Oil plc., ("LGO").
On March 14, 2013, along with subsequent updates, Maxim announced that it had entered into a Joint Venture and financing Heads of Agreement, ("HOA"), with LGO whereby Maxim and LGO will work together to jointly pursue oilfield development opportunities in Trinidad and Tobago ("Trinidad").
Upon signing of the HOA, LGO made an initial, refundable payment to Maxim of CND$75,000. Further payments by LGO of up to CND$2,425,000 (in cash or freely tradable ordinary shares of LGO would be payable pursuant to the terms of the HOA to Maxim on and after closing of the Proposed Transaction and the achievement by Maxim of certain performance objectives, in exchange for the issuance by Maxim to LGO of up to 30,000,000 shares of Maxim at a price of $0.12 per share, representing a maximum of approximately 49% of the issued and outstanding common shares of Maxim on completion of the Proposed Transaction. The proposed closing date of this transaction was scheduled for on or before September 26, 2013.
As of October 1, 2013, LGO and Maxim have mutually agreed that this HOA be extended for a 6 month period, subject to regulatory and shareholder approval (if applicable). This extension will allow both parties to continuously evaluate the ongoing litigation Maxim has with Jasmin Oil and Gas Limited, in Trinidad, while at the same time consider alternate development opportunities available to both companies to mutually pursue in Trinidad.
LGO has re-confirmed their interest in participating with Maxim in Trinidad based opportunities that become available going forward.
Arthur Brown, CEO of Maxim commented that "Maxim is pleased with LGO's ongoing financial commitment to future development opportunities and we look forward to working with them in the near future."
About Leni Gas & Oil plc
LGO is a company listed on the Alternative Investment Market of the London Stock Exchange ("AIM"). LGO is an international oil and gas exploration, development and production company incorporated in England and Wales and headquartered in London, England. LGO's main assets and operations are located in Trinidad and Spain.
Maxim is a junior oil and gas production and exploration company based in Vancouver, Canada. Maxim presently holds, through New Scotland Oil and Gas Limited, 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 to 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 up to a further 42 wells to be drilled.
For further information, please contact:
Arthur Brown, President and CEO of the Company at (604) 630-0280 or toll free at 1-888-882-8891.
E-mail: email@example.com http://www.maximresources.com/
On behalf of the Board
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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