Powermax makes first payments for Pinard project

Executive Summary

• Powermax Minerals Inc. has completed the initial milestone payments required under its option agreement to acquire a 100% interest in the Pinard Rare Earths Project in Northern Ontario.
• The company issued 160,000 common shares and paid an initial cash milestone of $18,000 to the property optionors.
• The Pinard project consists of 255 contiguous mining claims (5,178 hectares) in the Kapuskasing subprovince, hosted by an Alkaline igneous complex similar to known REE deposits in the region.

Key Details

• Transaction Structure: Option agreement to acquire 100% interest in the Pinard Rare Earths Project, subject to a 1.5% Net Smelter Returns Royalty (NSR).
• Initial Payments Completed:
  • Shares: 160,000 common shares issued.
  • Cash: $18,000 initial milestone payment made.
• Future Option Terms: The company may acquire the project by making further cash and share payments as detailed in the attached table (not provided in text, but referenced).
• NSR Buyback Right: The company has the right to reduce the NSR from 1.5% to 1.0% by paying $500,000 to the optionors.
• Project Location: Northern Ontario, Canada, approximately 70 km north-northeast of Kapuskasing.
• Property Size: 255 contiguous mining claims spanning 5,178 hectares.
• Access: Accessible via all-weather road using four-by-four vehicles.
• Geology: The Pinard intrusive rock complex is an Alkaline igneous host containing nepheline syenites, trachytes, and peralkaline granites. It is located in the Early Precambrian Kapuskasing subprovince and is geologically similar to the Clay Howell intrusive, which hosts a REE deposit 20 km to the southwest.
• Qualified Person: Afzaal Pirzada, PGeo, Director of the company, reviewed and approved the scientific and technical information.

Notable Quotes

• None explicitly quoted in the text, though the release is attributed to Mr. Paul Gorman.