Navasota Resources Ltd.
TSX VENTURE : NAV

Navasota Resources Ltd.

December 18, 2009 15:24 ET

Navasota Closes Non-Brokered Private Placement and Enters Into Amending Agreement Regarding Share Ownership of AMIG

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2009) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Navasota Resources Ltd. (TSX VENTURE:NAV) ("Navasota") (http://www.navasota.com) is pleased to announce that, further to its news release of December 9, 2009, it has closed a non-brokered private placement amounting to 19,999,998 common shares in the capital of Navasota at a price of $0.15 per share for gross proceeds of $2,999,999.70. Shares acquired by the placees are subject to a hold period until April 19, 2010, in accordance with applicable securities legislation.

Navasota is also pleased to announce that it has entered into an amending agreement with Amig Navasota Mining International S.A.R.L. ("AMIG"), African Mining International S.A.R.L. ("AMSI") and its shareholders pursuant to which Navasota will be required to make to AMSI a payment of US$350,000 in order to increase Navasota's ownership of AMIG from 45% to 51%. Navasota has the right to earn a 100-per-cent interest in AMIG.

Proceeds of the private placement will be used as follows:

  1. to make payments necessary to increase Navasota's ownership of AMIG to 51%;
  2. to initiate a pre-feasibility study on Navasota's southern, 406 square kilometre 'Telimele' block, which includes all of the bauxite resources outlined to date; and
  3. to complete analysis of bauxite samples from Navasota's northern 130 square kilometre 'Gaoual' block for inclusion in a Canadian National Instrument 43-101 compliant resource estimate.

Navasota remains focused on the development of the Koba Bauxite Project. The project encompasses two blocks totalling 536 square kilometres, situated in the prolific Boke Bauxite Belt in northwestern Guinea close to three bauxite mining operations. To date, Navasota has completed 36,759 metres of aircore drilling in 2,147 holes. Indicated resources total 343,183,000 tonnes averaging 42.78% Al2O3, 2.85% SiO2, and 27.83% Fe2O3, with an additional 63,342,000 tonnes of inferred resources averaging 43.81% Al2O3, 2.74% SiO2, and 26.76% Fe2O3. Scott Wilson Roscoe Postle Associates Inc. completed these resource estimates in accordance with Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.

All the stated resources lie on the southern 406 square kilometre Telimele block. The northern Gaoual block covers 130 square kilometres, a portion of which has been drilled by Navasota. Samples from this phase of drilling are now located at SGS's Lakefield facility in Ontario awaiting analysis. If warranted, a resource estimate will be initiated for the Gaoual block.

Christopher J. Wild, P.Eng, Vice-President, Exploration, with Navasota, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Navasota believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Navasota's management on the date the statements are made. Except as required by law, Navasota undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

This press release, required by applicable Canadian laws, is not for distribution to U.S. News Services or for dissemination in the United States, and does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

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 news release.

Contact Information

  • Navasota Resources Ltd.
    James T. Gillis
    President
    (250) 828-8728
    www.navasota.com