Kazax Issues Third Tranche Share Payment on Lomonosovskoye Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 10, 2014) - KazaX Minerals Inc. ("Kazax" or the "Company") (TSX VENTURE:KZX) announces as a follow-up to its news releases dated February 19, 2013, April 30, 2013 and May 30, 2013 that it has completed the third and final tranche share payment due to Safin Element GmbH ("Safin") under the terms of the Company's acquisition (the "Acquisition") of a 74.99% interest in the Lomonosovskoye Limited Liability Partnership (the "LomoLP"). In connection with the Acquisition, the Company has issued an additional 39,270,000 common shares to Safin at a deemed price of CDN$0.10 per share (the "Third Instalment Consideration Shares").
As previously disclosed, the LomoLP holds unrestricted exploration and production rights to the Lomonosovskoye iron deposit located in Kostanay Oblast Kazakhstan pursuant to a subsoil use contract between the LomoLP and the Ministry of Industry and New Technologies of Kazakhstan.
To date, the Company has issued an aggregate of 75,432,971 common shares to Safin and completed cash payments to Safin totalling US$8,933,784 (before payment of Capital Gains Tax), in accordance with the terms of the Acquisition share purchase agreement (the "SPA").
The Third Installment Consideration Shares issued to Safin are subject to resale restrictions until June 5, 2014. In addition, under the terms of the SPA, the parties have agreed to certain additional contractual hold periods, such that two tranches (consisting of 25% of the Third Installment Consideration Shares each) will have an additional hold period expiring 18 and 24 months from the original closing date under the SPA of February 15, 2013, respectively.
For additional information readers are invited to review additional corporate and property information available on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD
Trevor Campbell Smith, President & CEO
Neither the 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.
