Max Resources Corp. [MAX-TSXV, MXROF-OTC Pink, M1D2-FSE] rallied Friday after the company said it has raised $15.3 million from a private placement financing with proceeds earmarked for drilling and exploration at the company’s Cesar Project in Colombia.
The private placement consisted of 25.5 million units priced at 60 cents per unit. Each unit consists of one common share and one transferable common share purchase warrant, each of which is exercisable for one year at a price of 85 cents.
On Friday, Max shares rose 6.5% or $0.04 to 65 cents and now trade in a 52-week range of 90 cents and 15 cents.
The Cesar copper-silver project in northeastern Colombia lies along the northern portion of the world’s largest producing copper belt (Andean belt). This region has oil and gas export operations and Glencore’s Cerrejon, the largest coal mine in South America and the basis for much of the critical infrastructure in the Cesar basin.
Max is exploring a new basin-scale 90-kilometre-long copper-silver zone in Colombia that features three significant high-grade copper silver discoveries in 2020 to 2021. They include Uru, Conejo and AM.
In a press release in early February, 2022, Max said geological field crews have identified a second Uru drill target area located 2.0 kilometres south of Drill Target 3 (DT-3) within the Uru concession.,
It said the new drill target lies at the southern end of the 15-kilometre-long Uru zone, where systematic sampling has identified strong copper mineralization within a sub-basin structural regime. Of the 45 channel and composite samples released on February 1, 2022, the company said 38 of 45 were sampled over intervals of 10.0 to 25 metres. All returned copper values over 1.0%, spread over a significant area of 4.0 square kilometres. Highlight values of 4.34% copper and 37 g/t silver were encountered.
In addition, Max controls the RT Gold project (100% earn-in) in Peru, encompassing a bulk-tonnage primary gold porphyry zones, and 3.0 kilometres to the northwest, a gold-bearing massive sulphide zone. Historic drilling in 2001 returned values ranging from 3.1 to 118.1 g/t gold over core lengths ranging from 2.2 to 36.0 metres.
Max Resources shareholders include Endeavour Silver Corp [EDR-TSX, EXK-NYSE] which holds 5.0%-stake in Max. In a March 21, 2022 press release, Max said it and Endeavour have agreed to collaborate with one another, whereby Endeavour will provide certain financial capabilities required of Max by the National Mining Agency of Colombia for the benefit of securing mineral tenures within the entire Cesar copper-silver basis.
Under the agreement, Max will own such mineral tenures with Endeavour holding an underlying 0.5% net smelter return royalty. However, Endeavour’s royalty will not cover Max’s current mineral tenures.