Announces Approval for the Novita Transaction
MAX RESOURCE CORP. (MXR.V) reported that, at the Special Meeting of Shareholders held on April 2, 2019, shareholders adopted a special resolution approving the transaction with Noble Metals Limited and its wholly-owned subsidiary Condoto Platinum Limited. The Company has also received approval from the Board of Noble for the execution of the Transaction.
Transaction highlights include:
- The acquisition by MAX of 100% rights to mineral claims and mineral applications held by Noble and, more importantly, the "Novita Agreement", an exclusive right of first refusal to the mineral rights and mining rights over 1,050 sq. km held by the Novita Higher Community Council as sole owners of the land and minerals.
- The Novita Agreement area encompasses or is adjacent to the Company's Choco Precious Metals Project, which covers an area of 1,757 sq. km, located 100 km SW of Medellin, Colombia.
- Established infrastructure, including a fully operation 30-man exploration camp at the town of Novita.
- The Choco Precious Metals Project covers or is adjacent to historic surface production of 1.5Mozs of gold and 1.0Mozs of platinum by Compania Minera del Choco Pacifico between 1906 and 1990. (Source: R.J. Fletcher and Associates (2011) Review of Gold and Platinum Exploration and Production in Choco Province Colombia Part 3. Private Report for Condoto Platinum Ltd).
The Company advises that mineralization hosted on adjacent properties is not necessarily indicative of mineralization hosted on the Company's Choco Precious Metals Project.
Brett Matich, Max's President and Chief Executive Officer, commented: "Shareholder approval of the Noble Transaction represents a major milestone for the Company. This transaction secures a major ground position in a world class precious metals province."
The Transaction is described in a definitive asset purchase agreement dated effective February 8, 2019, pursuant to which the Company has agreed to purchase a bundle of resource exploration assets located in the Choco Department of Colombia between Noble, Condoto, a local Colombian branch of Condoto and the Novita Higher Community Council. In consideration for these assets, MAX has agreed to pay the sum of C$500,000 and to issue to Noble 26,665,896 MAX common shares.
At the Special Meeting, the Company's shareholders adopted an additional special resolution to approve Noble as a 'Control Person' of the Company as that term is defined in the policies of the TSX Venture Exchange. The Company anticipates that Noble will become a Control Person when the Acquisition Shares are issued upon the completion of the Transaction because, at closing, Noble will hold 29.2% of the issued and outstanding shares of the Company. The Transaction remains subject to conditions within the Transaction Agreement and the TSX Venture Exchange conditional approval letter.
About Max Resource Corp.
MAX Resource Corp. is a mineral exploration company focused on the development of prospective projects in the rich mineral belts of Colombia. The Company has established significant exploration infrastructure and local community support for two very large prospective Colombian projects: the Choco Precious Metals Project, located 100 kms south of Medellin, which covers or is adjacent to historic production of 1.5Mozs gold and 1.0Mozs platinum and the Gachala Copper Project, located 60 kms east of Bogota.
The Company is led by a seasoned management team with a track record of significant discovery and exploration success.