Maxtech Signs Binding Letter of Intent to Acquire Panama Gold Project in Historic Red Lake District
Vancouver, British Columbia, Sept. 10, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Maxtech Ventures Inc. (CSE: MVT) (Frankfurt: M1N) (OTC: MTEHF) (“Maxtech” or the “Company”) is pleased to announce the signing of a binding letter of intent (“BLOI”) to acquire 100% of the Panama Gold Project from Benton Resources Inc.
The property is located in the historic Red Lake mining district in Ontario, Canada which has produced more than 28 million ounces of high-grade gold. The Panama Gold project is located 50km away from and on trend with Great Bear Resources Dixie Project and has excellent exploration and discovery potential within a relatively underexplored area of the camp.
Recently, a high-detail airborne magnetic survey was completed and interpreted leading to help identify several high priority targets for immediate follow up. These targets include a distinct fold approximately 250m along strike from the Panama Zone which has not been previously identified. Benton has also recently discovered an old assessment file containing a visible gold occurrence in the northeast part of the project which needs to be investigated. In addition, the Panama project is host to some of the highest unsourced gold grains (107 grains) in glacial till discovered by the Geological Survey of Canada, 1999 (Open File 3038).
Peter Wilson, CEO and Director, stated, "The opportunity for Maxtech to explore such an advanced project at this stage of the gold price cycle is very timely. Red Lake has had multiple high-grade discoveries during the last several years and is host to Gold Corp., Pure Gold Mining and Great Bear Resources, among others."
Pursuant to the terms of the BLOI signed on August 30, 2019, Maxtech will have a 30-day due diligence period and subject to regulatory approval, will commit to the following over a 4 year period:
- Issue 2,000,000 Maxtech common shares to Benton upon completion of due diligence review at an underlying price of $0.05 per share;
- Pay Benton $100,000 in cash or share equivalent on first anniversary, based upon a 10-day VWAP at the time of the payment and complete $200,000 in exploration expenditures on the property;
- Pay Benton $100,000 in cash or share equivalent on second anniversary, based upon a 10-day VWAP at the time of the payment and complete $250,000 in exploration expenditures on the property at which point a 50% ownership interest will vest to MVT;
- Pay Benton $100,000 in cash or share equivalent on third anniversary, based upon a 10-day VWAP at the time of the payment and complete $250,000 in exploration expenditures on the property at which point a 70% ownership interest will vest to MVT; and
- Pay Benton $300,000 in cash or share equivalent on fourth anniversary, based upon a 10-day VWAP at the time of the payment and complete $300,000 in exploration expenditures on the property at which point a 100% ownership interest will vest to MVT.
About Maxtech Ventures Inc.
Maxtech Ventures Inc. is a Canadian-based diversified industries corporation focused on mineral properties.
For additional information see the Company’s web site at http://www.maxtech-ventures.com
Further information about the Company is available on www.SEDAR.com under the Company’s profile.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute “forward–looking statements” or “forward-looking information” (collectively “forward-looking information”) as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.