NXA Inc.
TSX VENTURE : NXI

August 16, 2007 17:37 ET

NXA Inc. Announces Acquisition of Additional Mineral Properties

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA

NXA Inc. (TSX VENTURE:NXI) ("NXA" or the "Company") announced today that it completed the acquisition of additional mineral properties in the Province of British Columbia pursuant to assignment agreements (the "Assignment Agreements") and acquisition agreements (the "Acquisition Agreements") with 1698727 Ontario Inc. (the "Vendor"), each effective August 9, 2007. Pursuant to these agreements, NXA has acquired the Vendor's rights in certain mining claims in British Columbia known as the Trail Peak and Axel Gold properties (the "Properties"), subject to regulatory and stock exchange approval. The terms of the Assignment Agreements provide, among other things, that NXA will be assigned all of the rights and obligations of the Vendor, a private Ontario corporation, all of the shares of which are held by a single individual who is at arm's length from the Company, under option agreements (the "Underlying Agreements") between the Vendor and the registered claimholders (the "Claimholders") of certain of the mining claims comprising the Properties. As assignee of the Vendor's interest in the Underlying Agreements, NXA may earn a 100% interest in the claims partially comprising the Properties through the payment of a total of $240,000 (of which $20,000 has been paid) and the issuance of 800,000 common shares of NXA to the Claimholders over a four year period. The Underlying Agreements also provide for a 2% net smelter return royalty in favour of the Claimholders. In addition, NXA must incur a total of $1,400,000 in exploration expenditures over a four year period on the Properties. As consideration for the assignment, NXA will, subject to receipt of required regulatory approvals, issue a total of 50,000 common shares to the Vendor, and will accelerate the issuance of a further 175,000 common shares required to be issued pursuant to previously completed mineral property acquisitions (see NXA's press release dated November 27, 2006). The terms of the Acquisition Agreements provide that NXA will acquire certain additional mining claims partially comprising the Properties by issuing to the Vendor a total of 50,000 common shares. These agreements also provide for a 2% net smelter return royalty in favour of the Vendor.

"We are very excited about the exploration opportunities represented by these properties" said Robert Metcalfe, the President and CEO of NXA. "Our team is focused on proceeding with our exploration plans and we feel these properties make an excellent addition to our portfolio of properties". NXA previously announced the acquisition of the Topley Richfield properties in British Columbia (see NXA's press release dated November 27, 2006).

NXA Inc.

NXA is a mineral exploration company with mineral properties in British Columbia, Canada. NXA is listed on Tier 2 of the TSX Venture Exchange.

FORWARD-LOOKING STATEMENTS

Some statements herein are forward-looking statements. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those anticipated in the forward-looking statements, and therefore readers should not place undue reliance on the forward-looking statements.

Shares Outstanding: 21,337,055

Completion of the transactions referred to herein is subject to TSX Venture Exchange approval. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • NXA Inc.
    Chuck Lilly
    Chief Financial Officer
    (705) 522-2400 ext. 207