Powermax Minerals Announces Option to Acquire Pinard Rare Earths Project

Executive Summary

• Powermax Minerals entered into an option agreement to acquire 100% of the Pinard Rare Earths Project in northern Ontario, subject to a 1.5% NSR royalty (potentially reducible to 1.0%).
• The agreement requires cash and share payments totaling CAD $410,000 over three years, with an additional $500,000 buy‑back option to lower the NSR.
• A Phase 1 exploration program has been outlined, including GIS modeling, field prospecting, geochemical sampling, radiometric surveys, and a high‑resolution airborne magnetic/gamma‑ray survey.

Key Details

• Option Arrangement: 100% interest in Pinard Rare Earths Project; NSR royalty of 1.5%, reducible to 1.0% upon $500,000 payment.
• Payment Schedule:
• Effective Date – CAD $18,000 cash (no shares).
• Within 7 business days of CSE approval – 160,000 common shares (no cash).
• 1‑year anniversary – 160,000 shares + CAD $16,000 cash.
• 2‑year anniversary – CAD $24,000 cash (no shares).
• 3‑year anniversary – CAD $32,000 cash (no shares).
• Total Consideration: 320,000 common shares and CAD $90,000 cash.
• Project Description: 255 contiguous mining claims covering 5,178 ha; accessible via all‑weather road; alkaline igneous host rocks similar to nearby REE deposits.
• Planned Phase 1 Exploration (Pinard Project):
• Desktop data compilation & GIS modeling of historic geological, geophysical, and geochemical datasets.
• Field prospecting & detailed geological mapping to locate pegmatite zones and alteration patterns.
• Geochemical sampling program: rock, soil, and stream‑sediment collection.
• Radiometric surveys using handheld scintillometers for pathfinder element anomalies.
• Airborne high‑resolution magnetic and gamma‑ray spectrometric survey via helicopter.
• Regulatory Conditions: Closing subject to customary conditions and approvals from the Canadian Securities Exchange (CSE).
• Qualified Person: Afzaal Pirzada, P.Geo., Director, reviewed and approved all scientific and technical information per NI 43‑101.

Notable Quotes

“The Pinard Rare Earths Project represents a strategic opportunity to expand our rare earth portfolio in a region with proven geological potential,” – Paul Gorman, CEO & Director.