Powermax closes private placements

Executive Summary

• Powermax Minerals Inc. completed two non-brokered private placement offerings, raising a total of approximately $2.98 million in gross proceeds.
• The company issued 5,697,000 non-flow-through (non-FT) units at 35 cents per unit and 2,351,476 flow-through (FT) units at 42 cents per unit.
• Proceeds are designated for general working capital, exploration of the Cameron and Atikokan rare-earth element (REE) properties, and qualifying Canadian exploration expenses.

Key Details

• Non-FT Unit Offering:
  • Quantity: 5,697,000 non-FT units.
  • Price: 35 cents per unit.
  • Gross Proceeds: $1,993,950.
  • Composition: Each unit consists of one common share and one share purchase warrant.
  • Warrant Terms: Exercisable into one share at an exercise price of 46 cents for a period of 24 months from issuance.
• FT Unit Offering:
  • Quantity: 2,351,476 flow-through units.
  • Price: 42 cents per unit.
  • Gross Proceeds: $987,619.92.
  • Composition: Each unit consists of one share and one non-flow-through share purchase warrant (FT warrant).
  • Warrant Terms: Exercisable into one non-flow-through share at an exercise price of 50 cents for a period of 24 months from issuance.
  • Tax Status: FT shares intended to qualify as flow-through shares under the Income Tax Act (Canada); proceeds used for qualifying flow-through mining expenditures.
• Finder’s Fees and Warrants:
  • Cash Fees Paid: $83,433 aggregate.
  • Non-FT Finders' Warrants Issued: 214,620 warrants, exercisable at 46 cents per share for 24 months.
  • FT Finders' Warrants Issued: 19,800 warrants, exercisable at 50 cents per share for 24 months.
• Use of Proceeds:
  • Non-FT Proceeds: General working capital and financing exploration on the Cameron REE property (British Columbia) and Atikokan REE property (Ontario).
  • FT Proceeds: Incurring Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.
• Restrictions: All securities are subject to a statutory hold period of four months and one day.