NXA Inc.
TSX VENTURE : NXI

April 02, 2009 09:50 ET

NXA Inc. Announces Shares for Debt Transactions

TORONTO, ONTARIO--(Marketwire - April 2, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

NXA INC. (TSX VENTURE:NXI) ("NXA" or the "Company") announced today that it proposes to repay certain creditors, including directors and officers of the Company, with common shares (the "Common Shares") of the Company (the "Shares for Debt Transactions"). The Company proposes to issue up to approximately 31,213,878 Common Shares to settle outstanding aggregate debt of approximately $713,475. The Company's outstanding debt is owed in connection with services rendered by service providers, consultants and directors' compensation. The Company is still in discussions with certain creditors holding an aggregate of approximately $132,721 of debt.

The Company has entered into definitive agreements with certain creditors holding an aggregate debt of $580,754.08. The Company intends to issue an aggregate of 24,577,802 Common Shares as settlement to such creditors on or about Friday, April 3, 2009. The Common Shares will be issued at a deemed price of $0.02 per share to those creditors at arm's length to the Company and a deemed price of $0.05 per share to certain officers and directors of the Company in repayment of services.

The Shares for Debt Transactions are subject to receipt of all necessary approvals from the TSX Venture Exchange. In addition, the Common Shares to be issued pursuant to the Shares for Debt Transactions will be subject to a four-month hold period.

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

Certain statements herein relating to NXA's plans to continue its exploration activities on its mineral properties are forward-looking statements and represent NXA's current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. The risks associated with these forward looking statements in respect of the Company's ability to carry out its exploration plans include the availability of exploration equipment and manpower, adverse weather conditions, unfavourable changes in environmental, mineral tenure holding or other legislation and regulations respecting mineral exploration in British Columbia, increases in political or social antithesis to mineral exploration in British Columbia and whether sufficient resources will be available to the Company to conduct such exploration, including whether any required financings of the Company can be arranged. Other factors not currently anticipated could also adversely affect the Company's exploration plans set out herein. All these factors should be considered carefully when making decisions with respect to the Company and actual results could be significantly different from those anticipated in the forward-looking statements, and therefore undue reliance should not be placed on the Company's forward-looking statements. Other than as required by applicable laws, the Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Shares Outstanding: 41,774,555

Neither 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 release.

Contact Information

  • NXA Inc.
    Robert J. Metcalfe
    President and CEO
    (416) 400-4457