Max Resource Corp (TSXV: MXR) this morning announced that it has optioned the previous Ebay palladium-platinum letter of intent for the property located in the Abitibi Region in Quebec. Under the agreement, Max may acquire up to 100% ownership in the property.
The option agreement calls for a number of related payments to be made on the property as exploration progresses through its natural cycle. The scheduled payments are as follows.
- Issue 2,950,000 common shares of Max within seven days of TSX Venture Exchange approval of the Agreement;
- On or before May 11, 2021, make a cash payment of $25,000 to the Vendors, issue common shares of Max having market value of $75,000, and complete $200,000 of exploration expenditures;
- On or before May 11, 2022, make a cash payment of $25,000 to the Vendors, issue common shares of Max having market value of $75,000 and complete an additional $600,000 of exploration expenditures; and,
- On or before May 11, 2023, make a cash payment of $75,000 to the Vendors, issue common shares of Max having market value of $225,000, and complete an additional $900,000 of expenditures.
Common shares to be issued under the agreement will be based on the thirty day volume weighted average price of the equity prior to the share issuance.
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Finally, Max will also be required to issue a 2% net smelter royalty to the vendor upon 100% acquisition of the property, half of which can be repurchased for a cash sum of $1.0 million.
The property itself is located in the Abitibi Region in Quebec, which is underlaid by the Archean Bell River Complex. Numerous programs have taken place on the property since 2000, which included a blast pit program, further trenching, as well as drilling. The latest drilling conducted on the property showed highlight values of 2.52 g/t palladium-platinum in a mineralization zone ranging 6.7 to 31.1 metres wide over a horizontal distance of 600 metres, at a maximum depth of 120 metres, with the zone remaining open in all directions.
Max Resource Corp last traded at $0.08 on the TSX Venture.
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