Navasota Resources Ltd.

Navasota Resources Ltd.

March 15, 2007 16:00 ET

Navasota Options Bauxite Exploration Project, Republic of Guinea, West Africa and Announces Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) - Navasota Resources Ltd. ("NAVASOTA") (TSX VENTURE:NAV) is pleased to announce that it has concluded a formal option agreement dated February 28, 2007 (the "Option Agreement") with La Societe AMIG Mining International S.A.R.L. ("AMIG") and its shareholders to earn and acquire up to 100% of the issued share capital of AMIG. AMIG is a Guinean corporation and its shareholders are residents of Conakry, Guinea, West Africa and are at arm's length to NAVASOTA.

AMIG is the legal and recorded holder of a mineral exploration permit granted by the Ministry of Mines and Geology of the Republic of Guinea on May 10, 2006, covering two contiguous areas aggregating 1064 square kilometres, located in the prefectures of Telemele and Gaoual (the "Project"), for the exploration of bauxite.

Under the terms of the Option Agreement, NAVASOTA has been granted an option to acquire an initial 45% of the issued share capital of AMIG by incurring a minimum aggregate US$2,000,000 in expenditures on the Project and by paying US$350,000 to the AMIG shareholders, within a period of three years.

Once NAVASOTA has exercised such option and thereby acquired 45% of the issued share capital of AMIG, NAVASOTA has the further option to elect to earn and acquire an additional 6% of the issued share capital of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG from 45% to 51%). To exercise such further option, NAVASOTA must incur all exploration and development expenditures necessary to complete and deliver to AMIG a bankable feasibility study in respect of the Project and must issue 1,000,000 of its common shares to the shareholders of AMIG.

Additionally, at any time after it has acquired 45% of the issued share capital of AMIG, NAVASOTA may elect to acquire all remaining issued shares of AMIG (thereby increasing its percentage ownership of the issued share capital of AMIG to 100%) by paying US$15,000,000 and issuing 15,000,000 of its common shares to the shareholders of AMIG.

The mineral exploration permit held by AMIG covers 1064 square kilometres situated in the "Boke bauxite belt" of north west Guinea. The Boke bauxite belt hosts the world's largest and highest quality bauxite deposits with grades of 40% to 60% aluminium oxide.

During a site visit undertaken in November 2006 on behalf of NAVASOTA, RSG Global Consulting determined that there are significant bauxitic plateaus within the permit area. Seven bauxitic laterite samples collected from two sites visited (Madina Diang and Kembera) were sent to SGS Lakefield in South Africa for analysis by XRF. Results are listed in Table 1.

Table 1 Bauxite Grab Samples
Sample ID Al2O3 SiO2
NAVAMIG001 52.8% 1.69%
NAVAMIG002 48.6% 1.26%
NAVAMIG003 50.5% 0.67%
NAVAMIG004 41.4% 0.97%
NAVAMIG005 47.7% 0.75%
NAVAMIG006 53.7% 2.25%
NAVAMIG007 20.9% 27.00%

These values are not representative without completing a first pass drilling program.

The permit area is located in a "very good neighbourhood" being directly surrounded by several of the world's major bauxite miners. Three refineries have been proposed for construction in the Boke belt in the next 5 years, all of which would be within close proximity to the AMIG permit area. As well, an existing railway line is located approximately 16km from the site. This line is apparently commercially available and runs an additional 135km to the port of Kamsar.

It is the opinion of RSG Global Consulting that the AMIG mineral exploration permit represents a very exciting opportunity to explore and potentially define a high quality bauxite deposit in the richest bauxite province in the world. To that end, a first pass program consisting of 7,125 metres of aircore drilling at 600m x 600m spacing, covering 171 square kilometres will assess the identified bauxite plateaus.

NAVASOTA is also pleased to announce that it has arranged a non-brokered private placement of up to 6,000,000 Units, at a price of $0.20 per Unit, for proceeds totalling up to $1,200,000. 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 $0.30 during a period of one year from the closing date 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 $0.50 per share 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 further the exploration of NAVASOTA's projects, and for general working capital.

Shares acquired by placees, and shares which may be acquired upon the exercise of the share purchase 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 Option Agreement and the private placement are subject to the acceptance of the TSX Venture Exchange.

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
    Corporate Secretary & CFO
    (250) 374-7377
    (250) 374-9296 (FAX)