Max Resource closes CAD $3.4 million private placement

Max Resource Corp. (TSXV: MAX) completed an over-subscribed private placement raising CAD $3.4 million, according to a company statement.

The Vancouver-based mining company issued 34 million units at CAD $0.10 per unit. Each unit consists of one common share and half of one transferable warrant. The warrants allow holders to purchase additional shares at CAD $0.175 each for two years.

Max Resource paid CAD $121,170 in finder's fees and issued 360,000 common shares plus 1.75 million broker warrants to third parties. The broker warrants carry the same CAD $0.175 exercise price and two-year term as the regular warrants.

The company plans to use proceeds for mineral exploration at its Mora Gold-Silver Project and general working capital. The offering requires final approval from the TSX Venture Exchange, and all securities are subject to a four-month hold period.

Max Resource acquired the Mora Property in August through its Colombian subsidiary. The property contains 40 historic workings and five active gold-silver mines, located near operations owned by Aris Mining (TSX: ARIS) and Collective Mining (TSX: CNL).

The company also operates the Sierra Azul Copper-Silver Project in Colombia under an earn-in agreement with Freeport-McMoRan Exploration Corporation. Freeport can acquire up to 80% ownership by funding CAD $50 million in expenditures and making CAD $1.55 million in cash payments.

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