Paramax Resources Ltd. (PXM-H.V), today announced further
details on the proposed transaction with MEGA Graphite Inc.
On May 8, 2013, Paramax entered into a business combination
agreement with MEGA Graphite and 2369505 Ontario Inc., a recently
incorporated wholly-owned subsidiary of Paramax.
Former holders of common shares of MEGA Graphite ("MEGA Graphite
Shares") will receive one common share of Paramax, at a deemed
price of $0.30 per Paramax Share, for approximately each 9.366832
MEGA Graphite Shares held. Following completion of the Transaction,
former holders of MEGA Graphite Shares will hold approximately 50%
of the issued and outstanding common shares of the Resulting Issuer
and former holders of Paramax Shares will hold approximately 50% of
the issued and outstanding Resulting Issuer Shares. The Business
Combination Agreement provides for the payment of $150,000, in
respect of the reimbursement of expenses, payable in certain
The Board of Directors of Paramax has unanimously approved the
Trading in Paramax shares is halted.
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