VANCOUVER - Maximus Ventures Ltd. (Maximus) announced today that it has acquired 8,000,000 common shares of NFX Gold Inc. (NFX), upon exercise of warrants previously acquired under an option and joint venture agreement between Maximus and NFX dated March 3, 2006 for the option to acquire a 60% interest in the Larder Lake properties in Ontario, as described in a news release dated April 21, 2006. Maximus owned no securities of NFX prior to the option and joint venture agreement. As a result of the exercise, Maximus will hold shares representing approximately 16.59% of the issued and outstanding shares of NFX. Maximus does not presently intend to acquire ownership of or control over additional securities of NFX Gold.
To exercise the warrants Maximus borrowed $2,000,000 from Laurentian Mountain Investment Ltd. (LMI), a private company controlled by Mr. David Fennell, chairman and director of Maximus. The LMI loan was approved by the independent directors of Maximus and is unsecured, non-interest bearing and is to be repaid from the first $2,000,000 of proceeds from the sale of NFX shares. The terms of the LMI loan agreement provide for the issuance to LMI of 500,000 common shares of Maximus and the right to a 10% participation in net proceeds from the sale of NXF shares after repayment of the loan principal, up to a maximum of $200,000. The loan agreement and share issuance is subject to acceptance of the TSX Venture Exchange.
Maximus has also signed an option agreement with Kodiak International Inc. (Kodiak), which gives Kodiak a 90 day option to purchase from Maximus in whole or in part in multiples of 500,000 shares, the 8 million shares of NFX at an average price of $0.725 per share. If Kodiak exercises its option in full, gross proceeds to Maximus after repayment of the LMI loan principal and LMI 10% participation will be approximately $3,600,000.
Larder Lake
Larder Lake, along with its interests in the Hope Bay gold belt in Nunavut, is one of Maximus' two principal exploration projects. The Larder Lake property extends about 6 kilometers along the Kirkland Lake-Larder Lake-Cadillac fault zone and includes the Cheminis mine, a historic gold producer, and numerous other gold occurrences. Drilling in December 2005 and January 2006 identified three additional fault zones on the property, similar to those that host the Cheminis mine and other significant producers in the region. Several new exploration targets have been identified along these fault zones with potential to host gold mineralization. Drilling of surface and deeper targets along the fault zones and in the vicinity of the Cheminis mine began in early June with one drill, as reported in a news release dated June 5, 2006.
Forward-looking Statements
This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forwardlooking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
On behalf of the Board of Directors of Maximus Ventures Ltd.
"F.T. Graybeal"
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