Navasota Resources Ltd.
TSX VENTURE : NAV

Navasota Resources Ltd.

June 13, 2008 12:36 ET

Navasota Announces $2,750,000 Financing

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - June 13, 2008) - Navasota Resources Ltd. ("Navasota") (TSX VENTURE:NAV) is pleased to announce that it has arranged a private placement of up to 5,500,000 units (the "Units"), at a price of $0.50 per Unit, for proceeds totalling up to $2,750,000. Each Unit is comprised of one common share and one-half of one non-transferable share purchase warrant (the "Warrant"); each whole Warrant will entitle the holder to purchase one additional common share at an exercise price of $0.75 during a period of 18 months from the closing date of the placement.

A portion of the placement, consisting of 2,000,000 Units, will be offered on a brokered basis with Desjardins Securities and including M Partners Inc on a selling concession basis. Navasota has agreed to pay the Agent a cash commission of 8% of the gross proceeds of such offering and to issue warrants to the Agent entitling the Agent to purchase common shares of Navasota in an amount equal to 4% of the number of Units sold under such offering, which warrants will be exercisable upon the same terms as the Warrants forming part of the Units.

An additional portion of the placement, consisting of 1,000,000 Units, will be offered on a non-brokered basis and in respect of which Navasota has agreed to pay a cash commission of 8% and to issue warrants to purchase common shares of Navasota in an amount equal to 4% of the number of Units sold, which warrants will have the same terms as the Warrants forming part of the Units.

The balance of the placement, consisting of 2,500,000 Units, will also be offered on a non-brokered basis and in respect of which Navasota has agreed to pay finders' fees of 8%.

If at any time after the first four (4) months of the term of the Warrants, the closing price for Navasota's common shares is equal to or greater than $1.50 per share, determined on a weighted average basis, for a period of twenty (20) consecutive trading days, Navasota may deliver a notice (the "Notice") to the holders of the Warrants notifying them that they must exercise their Warrants within thirty (30) days from the date of such Notice as otherwise the Warrants will expire thereafter.

The proceeds of the placement will be used to advance the exploration of Navasota's Koba Bauxite Project, located in the Republic of Guinea, West Africa and for general working capital.

Shares acquired by placees, and shares which may be acquired upon the exercise of the Warrants, are subject to a hold period and may not be traded in British Columbia until four months after closing of the private placement.

The private placement is subject to the acceptance of the TSX Venture Exchange.

For more information on Navasota and the Koba Bauxite Project, please visit: www.navasota.com.

On behalf of the Board of Directors

Navasota Resources Ltd.

James T. Gillis, Corporate Secretary & CFO

Neither the TSX Venture Exchange nor any other regulatory body has approved or disapproved of the information contained herein.

Contact Information

  • Navasota Resources Ltd.
    James T. Gillis
    (250) 374-7377
    (250) 374-9296 (FAX)
    Website: www.navasota.com