Business
Washmax provides acquisition update
Washmax provides acquisition update
About this update from South Star Battery Metals Corp
[{"type":"text","content":"\n\n\n\nDec. 17, 2009 (Canada NewsWire Group) -- TORONTO, Dec. 17 /CNW/ -- Washmax Corporation (WMC.H-NEX) (\"Washmax\" or the \"Corporation\") announced today that, further to its press release dated July 31, 2009, it is progressing with its acquisition (the \"Acquisition\") of the Dingman gold property (the \"Dingman Property\") located in Hastings County near Madoc, Ontario, from Opawica Explorations Inc. (\"Opawica\").In connection with the Acquisition, Washmax proposes, subject to regulatory and shareholder approval, to: (i) complete a private placement of up to $2,250,000 of units (the \"Financing\"), (ii) complete a one for four share consolidation (the \"Consolidation\"), (iii) change the Corporation's name to Upper Canada Gold Corporation, (iv) complete a shares for debt exchange and (v) adopt a fixed number stock option plan reserving up to 6,000,000 stock options.Acquisition of the Dingman Property-----------------------------------Washmax reached an agreement in principle in mid 2009 to acquire the Dingman Property from Opawica for $25,000 and the issuance of a number of common shares in the capital of Washmax (\"Common Shares\") that is equal to approximately 60% of the issued and outstanding Common Shares, after the share for debt conversion described below but before completion of the Financing, and at least 30% of the issued and outstanding Common Shares following completion of the Financing. Based on the foregoing and the proposed Financing and shares for debt issuances, Opawica will be issued approximately 11,744,752 post Consolidation Common Shares which will represent approximately 40% of the issued and outstanding Common Shares following the completion of the Acquisition and supporting transactions. In connection with the issuance, the Corporation will pay a finder's fee of $25,000 to an arm's length party in the form of 500,000 pre-Consolidation Common Shares, issued at a deemed price of $0.05.After the completion of the Acquisition and supporting transactions, the Corporation intends to engage in the exploration and eventual development of gold and other mineral properties, commencing with the Dingman Property.Private Placement Financing---------------------------Concurrently with the closing of the Acquisition, Washmax will be offering, on a private placement basis, a minimum of 8,750,000 units (\"Units\"...