Navasota Resources Ltd.
TSX VENTURE : NAV

Navasota Resources Ltd.

July 04, 2008 15:04 ET

Navasota Closes $2,750,000 Financing

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - July 4, 2008) -

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

Navasota Resources Ltd. ("Navasota") (TSX VENTURE:NAV) has closed a private placement of 5,500,000 units (the "Units"), at a price of $0.50 per Unit, for proceeds totalling $2,750,000. Each Unit is comprised of one common share (the "Share") and one-half of one warrant (the "Warrant"); each whole Warrant entitles the holder to purchase one additional common share at an exercise price of $0.75 during a period of 18 months.

A portion of the placement, consisting of 2,000,000 Units, was offered on a brokered basis by Desjardin Securities Inc., acting as agent (the "Agent"). Navasota has paid the Agent a cash commission of 8% of the gross proceeds of such offering and has issued share purchase warrants to the Agent entitling the Agent to purchase 80,000 common shares of Navasota at an exercise price of $0.50 per share until December 31, 2009.

An additional portion of the placement, consisting of 1,000,000 Units, was offered on a non-brokered basis; Navasota has paid a cash commission of 8% of the gross proceeds of such offering and has issued share purchase warrants to purchase 40,000 common shares of Navasota to an arm's length entity, which warrants are exercisable at a price of $0.50 per share until January 4, 2010.

The balance of the placement, consisting of 2,500,000 Units, was also offered on a non-brokered basis; Navasota has paid finders' fees equal to 8% of the gross proceeds of such offering to two arm's length entities in connection with this portion of the placement.

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 common 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 and Warrants acquired by placees, and common shares which may be acquired upon the exercise of the Warrants, are subject to resale restrictions until October 31, 2008 with respect to the brokered portion of the placement, and until November 4, 2008 with respect to the non-brokered portion of the placement.

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, Chairman of the Board, Corporate Secretary & CFO

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 of the securities described herein. These securities have not been 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this release nor any other regulatory body has approved or disapproved of the information contained herein.

Contact Information

  • Navasota Resources Ltd.
    James T. Gillis
    Chairman of the Board, Corporate Secretary & CFO
    (250) 374-7377
    Website: www.navasota.com