TORONTO, ONTARIO--(Marketwire - April 4, 2012) - United Reef Limited (TSX VENTURE:URP) ("United Reef") is pleased to announce that it has entered into an agreement with AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN") whereby United Reef has agreed to sell to AXMIN the 2% net smelter royalty ("NSR") which United Reef holds on the Passendro gold project in the Central African Republic. AXMIN has agreed to pay United Reef $250,000, for all of United Reef's right, title and interest in the NSR, by the issuance of 447,038 common shares of AXMIN. The number of AXMIN shares to be issued was determined by a calculation of the volume weighted average closing price of AXMIN's shares on the TSX Venture Exchange ("TSXV") for the 20 days ending on April 2, 2012. The NSR was originally granted to United Reef by Asquith Resources Inc., an AXMIN predecessor company, as partial consideration for the original Passendro license area, pursuant to a purchase agreement dated January 25, 1996, and as amended on May 19, 1999.
Completion of the transaction is subject to receipt of all regulatory and TSXV approvals. The transaction is expected to close on or about April 12, 2012. The AXMIN common shares to be issued under the agreement to United Reef will be subject to a statutory hold period of four months and one day from the date of issue of the shares.
Trading of United Reef's common shares on the TSXV are presently halted in connection with a proposed reverse take-over transaction, see United Reef's press releases dated December 5, 2011, January 23, 2012 and March 5, 2012.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.