Max Resource Corp (TSXV: MXR) has made it official. The firm this morning revealed it has now executived a definitive cooperation agreement with Endeavour Silver (TSX: EDR), which will enable the company to significantly expand its landholdings while also adding a major shareholder.
The cooperation agreement will see Endeavour provide the financial backing required by the National Mining Agency in Colombia to enable Max Resource to secure additional mineral tenures in the Cesar copper-silver basin. While little detail has been provided to date on this, Max has indicated that the expansion will allow the company to take control of the entire basin.
The additional mineral tenures secured as a result of the financial backing will be subject to a 0.5% NSR, payable to Endeavour. Current tenures owned by Max will not be subject to this however.
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In connection with the cooperation agreement, Endeavour has also taken a 5% stake in the company, by subscribing for 6.6 million units at $0.26 per unit. The company has agreed to maintain this ownership level into the future via certain top-ups as required, while also agreeing to not dispose of any of the shares for a period of at least two years post closing.
“As a major shareholder of Max Resource, Endeavour Silver looks forward to this endeavouring partnership with the objective of unlocking the true value of the Cesar project, which we believe may be the world’s largest undeveloped copper-silver district,” commented Dan Dickson, CEO of Endeavour Silver on the arrangement closing.
The investment being made into Max is part of a larger $7.76 million financing, which will see the issuance of a total of 29.5 million units, with each unit containing one common share and one half warrant. Warrants are valid for a period of two years and contain an exercise price of $0.36 per share. The financing is said to be in the final stages of closing.
Max Resource Corp last traded at $0.44 on the TSX Venture.
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