VAL D'OR, QC, Jan. 23 /CNW Telbec/ - Abitex Resources Inc. (TSX-V: ABE) (the "Company") is pleased to announce an amendment to three option agreements between Central Uranium Corporation ("CUC"), a wholly owned subsidiary of the Company, and Azimut Exploration Inc. ("Azimut") relating to the Kanjiq, South Bienville and Central Minto properties (collectively the "Properties"). The amendments are subject to final approval by the TSX Venture Exchange.
The three properties cover over 2,200 square kilometres in Northern Quebec. The Company, through CUC, invested approximately $2M on exploration of these three projects in 2008. Final reports for the exploration programs and sampling assay results are expected shortly.
Under the terms of the amended agreements for the Properties, a total of 1,000,000 shares of the Company will be issued to Azimut on or before January 31, 2009 at a deemed price of $0.40 per share, in lieu of $400,000 in previous cash commitments. A further 250,000 shares may be issued on or before July 19, 2009 at a deemed price of $0.40 in lieu of $100,000 in cash commitments.
The Company also retains the right to exercise its option to acquire an additional 15% interest in any of the Properties through the issuance of 250,000 shares of the Company per property at a deemed price of $0.40, in lieu of $100,000 in previous cash commitments.
New Stock Option Plan and Grant of Options
The Company has replaced its current incentive stock option plan of a maximum of 20% of the number of outstanding common shares of the Company with a new rolling plan (the "New Plan") which provides for grant of incentive stock options equal to a maximum of 10% of the number of outstanding common shares of the Company at the time of the grant. The New Plan has been conditionally approved by the TSX Venture Exchange and is subject to shareholder approval at the next annual meeting.
The Company also announces that it has granted 1,500,000 stock options at an exercise price of $0.40 and 240,000 stock options at an exercise price of $0.30 to directors, officers, employees and consultants which are exercisable until December 29, 2013.
"We are pleased with the amended agreements as they preserve cash and minimize shareholder dilution by issuing shares at a significant premium over the current stock price," said Yves Rougerie, President and CEO of the Company. "We are also pleased that key management has accepted stock options at a significant premium to the recent stock price and reinforces the Company's view on how the stock price and the sector at large has been oversold. The new plan reflects our commitment to shareholders".
Abitex is an exploration and development company based in Val d'Or, Quebec, which is currently focused on the definition drilling of the "L" deposit in Quebec's Otish Mountains region and the ongoing acquisition of advanced exploration or near-term production uranium assets.
The Company's public documents may be accessed at www.sedar.com
The TSX Venture Exchange (TSX-V) does not accept responsibility for the
adequacy or accuracy of this release.
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