Powermax Minerals Announces Closing of $3M Private Placement Offerings

Executive Summary

• Powermax Minerals completed two non‑brokered private placements, raising a total of $2.999 million in gross proceeds.
• The offerings consisted of 1,643,947 Non‑FT Units at $0.76 each and 1,945,000 FT Units at $0.90 each, each unit including a common share and a purchase warrant.
• Proceeds will be used for general working capital and to fund Canadian exploration expenses that qualify as flow‑through mining expenditures.

Key Details

• Non‑FT Private Placement
• Units sold: 1,643,947
• Price per unit: $0.76
• Gross proceeds: $1,249,400

• Unit composition: 1 common share + 1 warrant (exercise price $0.95, 36‑month term)

• FT Private Placement

• Units sold: 1,945,000 flow‑through units
• Price per unit: $0.90
• Gross proceeds: $1,750,500

• Unit composition: 1 FT share + 1 non‑flow‑through warrant (exercise price $1.10, 24‑month term)

• Finder’s Compensation

• Total finder fees paid: $164,994

• Finder’s warrants issued: 195,600 (exercisable at $0.95 for 36 months)

• Use of Proceeds

• Non‑FT proceeds: general working capital and exploration work on BC and Ontario projects.

• FT proceeds: to incur Canadian exploration expenses that qualify as flow‑through mining expenditures under the Income Tax Act.

• Securities Hold Period

• All securities subject to a statutory hold period of four months and one day.

• Regulatory Notices

• Securities not registered in the United States; U.S. distribution prohibited.

Notable Quotes

• “The successful completion of these private placements provides us with essential capital to advance our exploration programs and maintain operational flexibility,” – Paul Gorman, CEO & Director.