Friday, November 26, 2010

Maxim Resources Inc. (MXM.V) Receives Letter of Intent from Jasmin Oil & Gas Limited

Maxim Resources Inc. released news earlier this week that it has received a Letter of Intent from Jasmin Oil & Gas Limited. The LOI outlines a plan for Maxim to acquire 100% Jasmin’s shares.

Maxim and Jasmin will enter into definitive agreements prior to the removal of the LOI’s conditional clauses. The ensuing agreements will then be subject to the approval of the TSX Venture Exchange, (TSXV). Finder’s fees may be payable in accordance with the TSXV policies as well.

Maxim presently has a 69% Net Revenue Interest in exploration and production of Jasmin within the1,350-acre South Erin Block. After payout of the investment, 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.

Jasmin, a privately held company, is registered in Trinidad and Tobago. At this time, the conditions of the LOI are in the process of being satisfied; the four shareholders representing 100% of the shares of Jasmin have agreed to sell their positions to Maxim. 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.

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