Max Resource Update and Consolidation of Colombian Mineral Assets
Vancouver, British Columbia--(Newsfile Corp. - October 15, 2019) - MAX RESOURCE CORP. (TSXV: MXR) (OTC Pink: MXROF) (FSE: M1D1) ("Max" or the "Company") further to the Company's press release April 3, 2019, the Company has terminated the Definitive Asset Purchase Agreement ("Agreement") with Noble Metals Limited ("Noble") to purchase a bundle of resource exploration assets located in the Choco department of Colombia and, further to the Company's press release dated May 8, 2019, the Company has terminated the Letter of Intent ("LOI") with Noble and Buena Fortuna Mining Company Pty. Ltd. to acquire up to a 100 percent interest in the Andagueda Mining Pty. Ltd. which holds an exploration and mining agreement with the Tahami Indigenous Reservation of Alto Andagueda. Both the Agreement and the LOI have been terminated due to challenges surrounding access and due diligence.
However, the Company is retaining priority mineral applications that are registered to Max for both the Choco Gold project and the North Choco Gold project and plans to revisit once Max is satisfied the access issues are resolved.
Max's exploration focus is the Cesar Copper-Silver property area. Max now holds the following projects in Colombia:
Cesar Copper-Silver Property
The recently acquired Cesar Copper-Silver property is located approximately 420 km north of Bogota in north east Colombia. Max's exploration activities will continue to focus on the Cesar property area. Max recently reported (see September 24, 2019 News Release) significant highlight grab sample copper assays of 4.15% and associated highlight silver assays of 116 g/t from 12 distinct outcrops within an area of 9 sq. km. Sixteen of the 24 samples exceeded 1% copper with three exceeding 3% copper, with the mineralization appearing to be open in all directions. Max cautions investors selected grab samples are selected samples and are not necessarily representative of mineralization hosted on the property.
Over recent months, the Max in country technical team have compiled a proprietary geologic data base over the 480-kilometre-long prolific Jurassic copper mineral district which covers the Cesar Copper property area. This database generated detailed geological, geochronological, petrographical and seismic data, which the Max technical team is currently interpreting with the aim of target identification and significantly expanding the Cesar Property landholdings.
Choco Gold Project
The Choco Gold project is located approximately 120 km SE of Medellín Colombia. The Company plans to reduce the area of the mineral applications to approximately 350 sq. km encompassing the conglomerate discovery area from which the most recent alluvial concentrate results included sample 001 grading 340.84 g/t gold and 111.03 g/t platinum and sample 002 grading 222.06 g/t gold and 113.83 g/t platinum (see April 16, 2019 News Release). Sample 001 consisted of 26.8 kg of material subsequently panned to a concentrate of 57.99 g which was subsequently assayed and reported. The numbers for sample 002 were 22.8 kg and 39.39 g respectively.
North Choco Gold Project
The North Choco Gold project is located approximately 80 km SW of Medellin. The Company plans to reduce the area of the mineral applications to approximately 300 sq. km, which encompasses the recently announced 3 km by 1 km gold "Discovery Zone" and the newly identified a 6 km long by 3 km wide alunite alteration anomaly.
North Choco will also cover the area which the Company is awaiting assay results from a recent exploration program where two historic INGEOMINAS gold anomalies were recorded. The historic NW gold anomaly is 5 km long by 4 km wide with a highlight grab rock sample of 15 g/t gold and the historic NE gold anomaly is 6 km long by 5 km wide with a highlight grab sample of 12 g/t gold (see September 19, 2019 News Release). Max cautions investors selected grab samples are selected samples and are not necessarily representative of mineralization hosted on the property and further cautions it has yet to verify this historic information.
The Company is also proposing a consolidation of the Company's common shares ("Common Shares") on the basis of one (1) post-consolidated share for every six (6) pre-consolidated shares (the "Consolidation"). The completion of the Consolidation will be subject to the approval of the TSX Venture Exchange (the "Exchange"). The Company will issue a further news release announcing further details, including the effective date, of the Consolidation.
The Board of the Company has approved, subject to the approval of the Exchange, to issue non-transferrable unsecured convertible debentures up to an aggregate amount of $1,000,000 (the "Debentures") that will mature on the date that is twelve months from the date of issuance (the "Issue Date") and bear interest at a rate of 8% per annum, calculated and paid in cash quarterly in arrears. Subject to Exchange approval, the Debentures may be converted by the debenture holder into post-Consolidation Common Shares at any time, at a conversion price equal to the closing price of the post-Consolidation Common Shares on the Exchange, prior to the delivery of a Prepayment Notice or Conversion Notice, as applicable, subject to the Exchange's minimum conversion prices.
The Debentures and the post-Consolidation Common Shares issuable upon the conversion of the Debentures will be subject to a statutory resale restriction for four months and one day from the date of issuance. The Company intends to use the proceeds received from the issuance of the Debentures for exploration expenses, working capital and general corporate purposes. The issuance of the Debentures is subject to Exchange approval.
The Company also reports Mr. Stuart Rogers has resigned as a Director to facilitate the appointment of Mr. Patrick Frandle to the Board. The Company wishes to thank Mr. Rogers for his many years of contributions to the Company and wishes him all the best in his future endeavours.
About Max Resource Corp.
Max is a mineral exploration company with an experienced and successful management team focused on advancing the development of its landholdings in the rich mineral belts of Colombia. The Companies projects have recently been assessible to modern exploration and represent significant potential for the discovery of important-scale mineral deposits that can attract major partners.
Max works closely with local governments, indigenous groups and other project stakeholders in order to advance its exploration activities and to do so in a manner that contributes to sustainable community and economic development.
Tim Henneberry, P Geo (British Columbia), a member of the Max Resource Advisory Board, is the Qualified Person who has reviewed and approved the technical content of this news release on behalf of the Company.
For more information visit: https://www.maxresource.com/
For additional information contact:
Max Resource Corp.
T: (604) 290-8100
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to the completion of the Consolidation, the issuance of the Debentures, and delays or uncertainties with regulatory approvals, including that of the Exchange. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the commercialization plans for Max Resources Corp. described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available at www.sedar.com
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