Stocks & Investing
Stocks and Investing
Stocks and Investing
Fri, September 25, 2009
Thu, September 24, 2009 
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2009) - MAXY GOLD CORP. (TSX VENTURE:MXD) is pleased to report that it has signed a Letter of Intent ("LOI") with the Tier 1 TSX Venture Exchange listed company, Lara Exploration Ltd. (LRA, "Lara"), respecting the merger of Maxy into, or acquisition of Maxy by, Lara at an exchange ratio of one Lara share for eight Maxy shares. With Lara's shares closing at $0.70, the exchange ratio being offered by Lara represents a premium of 35% to the closing price of Maxy's shares on September 22, 2009. The transaction will involve Lara issuing 4,307,733 shares to Maxy shareholders, so that, following completion, Lara will have 23,554,234 issued shares of which 18.29% will be held by the former shareholders of Maxy. It is intended that Maxy's President, Andre Gauthier, will join Lara's Board of Directors and become its President on closing. The transaction has been approved by the Boards of Directors of both companies, but remains subject to approval of Maxy's shareholders and the TSX Venture Exchange.
The proposed transaction will unite Maxy and its highly prospective exploration portfolio in Peru, and property interests in China with Lara, a well-funded prospect generator with a multi-commodity exploration portfolio focused on Brazil but with significant property holdings in Colombia and Peru. Maxy shareholders are encouraged to review Lara at its website: [ www.laraexploration.com ]
Andre Gauthier, Maxy President and CEO stated : "The proposed merger will allow Maxy shareholders to participate in a well funded Company with an exciting multi-commodities exploration program in three of the most promising mineral exploration countries of South America, together with exposure to the business relationships Maxy carefully cultivated in China in recent years."
About Maxy
Maxy is a publicly traded junior exploration company focused on mineral acquisition, exploration and development in China and Peru. Maxy has internationally recognized Management and Exploration Teams, with a large diverse network of contacts throughout China and South America. Maxy's common shares trade on the TSX Venture Exchange under the symbol "MXD".
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statement.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
