Max Resource Corp (TSXV: MXR) this morning made a brief announcement to the marketing, identifying that it has secured 100% of the underlying royalties for its Cesar Copper-Silver Project, located North of Bogota, Colombia. The underlying royalty was previously applicable to both AM North and AM South.
Under the terms of the transaction, the underlying royalty was acquired in exchange for an annual US50,000 payment for a period of ten years. The company has indicated that the payment has already been made for 2020. Additionally, the company has agreed to issue a 3% net smelter royalty to the vendors as part of the arrangement.
The net smelter royalty can be acquired by Max Resource Corp any time prior to the commencement of production on the property in exchange for US$4.0 million.
“The removal of royalties on our CESAR project is a significant step in Max’s strategy of creating a pathway to secure assets unencumbered from royalties and continue the landholding expansion in this prolific copper-silver district.”
Brett Matich, CEO of Max Resource
Max Resource Corp last traded at $0.48 on the TSX Venture.
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