Powermax closes $3-million of private placements

Executive Summary

• Powermax Minerals Inc. completed two non-brokered private placement offerings, raising a total of approximately $3 million in aggregate gross proceeds.
• The offering consisted of 1,643,947 non-flow-through (non-FT) units and 1,945,000 flow-through (FT) units, with specific use of proceeds designated for general working capital/exploration and Canadian exploration expenses, respectively.
• The transaction included the issuance of share purchase warrants to investors and finders, subject to a statutory hold period of four months and one day.

Key Details

• Non-FT Offering:
  • Quantity: 1,643,947 units.
  • Price: $0.76 per unit.
  • Gross Proceeds: $1,249,400.
  • Composition: Each unit consists of one common share and one share purchase warrant.
  • Warrant Terms: Exercisable at $0.95 per share for 36 months from issuance.
  • Use of Proceeds: General working capital and financing exploration work on mineral projects in British Columbia and Ontario.
• FT Offering:
  • Quantity: 1,945,000 flow-through units.
  • Price: $0.90 per unit.
  • Gross Proceeds: $1,750,500.
  • Composition: Each unit consists of one share and one share purchase warrant.
  • Warrant Terms: Exercisable at $1.10 per share for 24 months from issuance.
  • Use of Proceeds: Incurring Canadian exploration expenses qualifying as flow-through mining expenditures under the Income Tax Act (Canada).
• Finder’s Fees and Warrants:
  • Cash Fees Paid: $164,994 in aggregate.
  • Warrants Issued: 195,600 finders' warrants.
  • Finder's Warrant Terms: Exercisable into one share at $0.95 per share for 36 months from issuance.
• Regulatory/Restrictions:
  • All securities issued are subject to a statutory hold period of four months and one day.

Notable Quotes

• None provided in the text.