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Message: Letter of Intent

Letter of Intent

posted on Mar 18, 2010 11:42AM
AfNat signs LOI on takeover deal with AXMIN
Business Financial Newswire - AfNat Resources has signed a letter of intent with AXMIN Inc, a Canadian exploration and development company with a strong focus on central and west Africa.

The LOI sets out AXMIN's non binding proposal to acquire all of the issued and outstanding securities of AfNat.

AfNat and AXMIN have agreed to binding mutual exclusivity provisions.

In consideration for the proposed acquisition, it is anticipated that AXMIN would issue an aggregate of 202,359,544 common shares to AfNat shareholders and an aggregate of 14,961,941 share purchase warrants to acquire common shares of AXMIN to former holders of convertible securities of AfNat.

The number of common shares to be issued, and share purchase warrants to be granted, may change depending on the number of holders of convertible securities of AfNat who exercise their convertible right prior to completion of the transaction.

It is anticipated that upon the successful completion of the proposed transaction, AfNat shareholders will hold approximately 39.6% of the issued and outstanding shares of AXMIN, or 41.2% on a partially-diluted basis.

The transaction is expected to be effected by a scheme of arrangement under the laws of Bermuda and will be subject to the approval of the TSX Venture Exchange as well as board, shareholder and regulatory approvals and the sanctioning of the scheme by the Supreme Court of Bermuda.

Story provided by Business Financial Newswire
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