Powermax enters option deal to acquire Pinard project

Executive Summary

• Powermax Minerals Inc. has entered into an option agreement to acquire a 100% interest in the Pinard rare-earths project in Northern Ontario, Canada.
• The acquisition is subject to a 1.5% Net Smelter Returns Royalty (NSR), which can be reduced to 1.0% via a $500,000 buyback payment.
• The company plans to initiate a Phase 1 exploration program involving desktop studies, field mapping, geochemical sampling, and airborne geophysical surveys to identify priority targets.

Key Details

• Transaction Structure: Option agreement to acquire 100% interest in the Pinard rare-earths project.
• Royalty Terms: Subject to a 1.5% NSR. The company holds a buyback right to reduce the NSR to 1.0% by paying $500,000 to the optionors.
• Property Location & Size: Located in Northern Ontario, approximately 70 km north-northeast of Kapuskasing. Defined by 255 contiguous mining claims spanning 5,178 hectares.
• Geology: The Pinard intrusive rock complex is an Alkaline igneous host (nepheline syenites, trachytes, peralkaline granites). It is similar to the Clay Howell intrusive, which hosts a REE deposit 20 km to the southwest.
• Consideration: Cash and share payments to optionors (specific amounts referenced as being in an attached table not provided in text).
• Exploration Plan (Phase 1):
  • Desktop data compilation and GIS modelling.
  • Field prospecting and geological mapping to identify pegmatite zones and mineralized structures.
  • Geochemical sampling (rock, soil, and stream sediment).
  • Radiometric surveys using handheld scintillometers.
  • Airborne geophysical survey (helicopter-borne magnetic and gamma-ray spectrometric).
• Regulatory Status: Subject to customary closing conditions and regulatory approvals, including Canadian Securities Exchange (CSE) approval.
• Qualified Person: Afzaal Pirzada, PGeo, Director of the company, reviewed and approved the scientific and technical information.

Notable Quotes

• None provided in the text.