Canamax budget to hit $11 million

A total of $11.5 million is budgeted by Canamax Resources on Canadian exploration this year.

Of that amount, $8 million comes from certain agreements reached with Amax of Canada Ltd., Amax Inc. and NIM and Co. Limited Partnership — 1987 whereby Canamax will issue 820,347 shares to Amax of Canada.

Of this total, 606,061 shares will be issued at $8.25 per share as provided for in the $5-million financing agreement referred to in the 1983 Canamax prospectus. The remaining 214,286 shares will be issued for the remaining $3 million at a negotiated price of $14.

The issuance of these shares will increase Amax’s ownership to about 36.4%.

The above arrangements are subject to board of director approval and regulatory approval.