- Micro-cap copper stock Max Resource (TSXV:MAX) has signed an earn-in agreement with Freeport-McMoRan (NYSE:FCX), one of the world’s largest publicly traded copper producers, to explore the company’s wholly owned and highly prospective Cesar copper-silver project in Colombia
- Freeport-McMoRan will be able to earn up to an 80 per cent stake in Cesar by spending up to C$51.55 million in cash and exploration expenditures
- Max Resource is a junior copper miner advancing its district-scale Cesar copper-silver project in Colombia
- Max Resource stock has added 7.69 per cent year-over-year, but has lost 86.27 per cent over the past five years
Micro-cap copper stock Max Resource (TSXV:MAX) has signed an earn-in agreement with Freeport-McMoRan (NYSE:FCX), one of the world’s largest publicly traded copper producers, to explore the company’s wholly owned and highly prospective Cesar copper-silver project in Colombia.
Subject to TSXV approval, Freeport will receive a two-stage option to acquire up to 80 per cent of Cesar in exchange for up to C$50 million in expenditures and cash payments of C$1.55 million.
To earn an initial 51 per cent interest, Freeport must fund C$20 million worth of exploration over five years and make periodic payments of C$0.8 million, with Max remaining as Cesar’s operator. To earn a further 29 per cent interest, Freeport must fund an additional C$30 million in exploration commitments over five years and make payments of C$0.75 million.
Leadership insights
“Careful consideration was given in selecting the best suited earn-in party for Cesar, and access to Freeport’s global team and expertise is aimed at unlocking Cesar’s potential. Freeport has a track record of global copper discoveries that have proceeded to mine development and production. Max looks forward to advancing our Cesar project with Freeport, one of the world’s largest copper producers,” Brett Matich, Max Resource’s chief executive officer, said in a statement.
“The Cesar project is host to one of the world’s largest underexplored sedimentary copper-silver systems, and we believe Freeport’s endorsement of the Cesar project is a testament to its potential for hosting a world-class deposit,” Matich concluded.
What is the value proposition behind Max Resource’s Cesar project?
The Cesar copper-gold project resides along the northern portion of the Andean Belt, the world’s largest producing copper belt. The project is composed of three continuous districts spanning 120 km, and 20 mining concessions spanning more than 188 square kilometres, with ample evidence of extensive mineralization.
The AM district boasts more than 15 km of strike and a highlight sample of 34.4 per cent copper and 305 g/t silver. Max has confirmed continuous stratiform mineralization at depth, as well as high-grade mineralized outcrops labelled AM-1 through AM 14.
The Conejo district, about 30 km south of the AM district, features mineralized outcrops over 3.7 km within the primary target area and surface samples averaging 4.9 per cent copper, with no drilling conducted to date.
The URU district, approximately 60 km south of AM, includes 12 targets highlighted by values of 9 m of 7 per cent copper and 115 g/t silver at surface (URU-12), and 19 m of 1.3 per cent copper in outcrop (URU-9).
Source: Max Resource.
Cesar also benefits from major infrastructure resulting from oil and gas and mining operations, including Glencore’s Cerrejón, the largest coal mine in South America.
Cesar’s 2024 work program seeks to delineate drill targets through stream sediment sampling, soil sampling, rock sampling, surface mapping, extension of ground magnetics, an induced polarization program, and a completed 10,000-line kilometre airborne magnetic and radiometric survey covering 1,150 square km over all three districts.
About Max Resource
Max Resource is a junior copper miner advancing its district-scale Cesar copper-silver project in Colombia.
Max Resource stock (TSXV:MAX) is down by 33.33 per cent on the news, trading at C$0.14 per share as of 10:07 am ET. The stock has added 7.69 per cent year-over-year, but has lost 86.27 per cent over the past five years.
Join the discussion: Find out what everybody’s saying about this micro-cap copper stock on the Max Resource Corp. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.