LGO has reached the agreement with Maxim to extend the deadline to complete the transaction envisaged in the HOA (the "Proposed Transaction").
Upon signing of the HOA, LGO made an initial, refundable, payment to Maxim of CDN$75,000. LGO committed to make further payments up to CDN$2,425,000 in cash or freely tradable ordinary shares in LGO on and after closing of the Proposed Transaction and the achievement by Maxim of certain performance objectives, in exchange for the issuance by Maxim to LGO of up to 30,000,000 shares of Maxim at a price of CDN$0.12 per share, representing a maximum of approximately 49% of the issued and outstanding common shares of Maxim. The proposed closing date of this transaction was previously set as 26 September 2013.
The companies have now reached agreement that the HOA will be extended by 6 months in order for Maxim to continue to pursue the imminent court case concerning its interests in the South Erin Block in Trinidad. LGO and Maxim will continue to work together to explore oil development opportunities in Trinidad.