Max Resource Extends Expiry Date and Amends Price on Share Purchase Warrants

Rhea-AI Summary

Max Resource Corp (TSXV: MAX) (OTC Pink: MXROF) has announced amendments to its common share purchase warrants. The company is modifying 14,825,000 warrants that were originally issued on March 28, 2022. The key changes include:

1. Extension of the expiry date by one year from March 28, 2025, to March 28, 2026
2. Reduction of the exercise price from $0.36 to $0.31

The amendment is pending approval from the TSX Venture Exchange. New warrant certificates will only be issued upon request from relevant warrant holders.

Positive

• Reduced warrant exercise price from $0.36 to $0.31 makes exercising more attractive for holders
• One-year extension provides warrant holders additional time to exercise

Negative

• Warrant amendments may signal company's difficulty in raising capital at original terms
• Potential future dilution if all 14,825,000 warrants are exercised

Vancouver, British Columbia--(Newsfile Corp. - February 5, 2025) - MAX RESOURCE CORP. (TSXV: MAX) (OTC Pink: MXROF) (FSE: M1D2) ("Max" or the "Company") announces the amendment of certain common share purchase warrants originally issued by way of private placement (the "Amendment").

The Amendment consists of an aggregate 14,825,000 warrants issued on March 28, 2022, having an exercise price of $0.36, whereby the expiry date of the warrants will be extended one additional year from March 28, 2025 to March 28, 2026 and the exercise price will be amended to $0.31.

The Company will not be sending out new warrant certificates pursuant to the Amendment unless requested by the relevant holders. The Amendment remains subject to the approval of the TSX Venture Exchange.

About Max Resource Corp.

The Company's wholly owned Sierra Azul Project sits along the Colombian portion of the world's largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors (Glencore and Chevron). Max has an Earn-In Agreement ("EIA") with Freeport-McMoRan Exploration Corporation ("Freeport"), a wholly owned affiliate of Freeport-McMoRan Inc. (NYSE: FCX) relating to the Sierra Azul Project. Under the terms of the EIA, Freeport has been granted a two-stage option to acquire up to an 80% ownership interest in the Sierra Azul Project by funding cumulative expenditures of C$50 million and making cash payments to Max of C$1.55 million. Max is the operator of the initial stage. The USD $4.2 million 2024 exploration program for the Sierra Azul Project is funded by Freeport.

The Company's Florália DSO Project is located 67-km east of Belo Horizonte, Minas Gerais, Brazil's largest iron ore and steel producing State. Max's technical team has significantly expanded the Florália hematite geological target from 8-12mt at 58% Fe to 50-70mt at 55%-61% Fe.

Max Brazil has now commenced inaugural drill programs at the Florália DSO Project, consisting of approximately 1,000m of diamond and 800m by a mobile power auger rig.

The Company has added an Australian entity, Max Brazil, to hold the "Florália DSO Project" through the existing Canadian and Brazilian holding entities. As announced on January 9, 2025, Max Brazil plans to seek listing on the ASX Limited ("ASX" or "Australian Stock Exchange").

Max cautions investors the potential quantity and grade of the iron ore is conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource, and Max is uncertain if further exploration will result in the target being delineated as a mineral resource.

Hematite mineralization tonnage potential estimation is based on in situ high-grade outcrops and interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.8t/m³. Hematite sample grades range between 55-61%Fe. Hematite mineralization tonnage potential estimation is based on in situ hematite outcrop interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.5t/m3. The 58 channel samples were collected for chemical analysis from in situ outcrops in previously mined slopes of industrial materials. Channel samples weighed in average 14 kg. Chemical analysis was performed at ALS Laboratories. Metal Oxides are determined using XRF analysis. Fusion disks are made with pulped samples and the addition of a borate-based flux. Max did not insert standards or blanks in the assay stream and is relying on ALS's lab QA/QC.

For more information visit: https://www.maxresource.com and https://maxironbrazil.com.

For additional information contact:

Tim McNulty E: info@maxresource.com T: (604) 290-8100 
Rahim Lakha E: rahim@bluesailcapital.com 
Brett Matich T: (604) 484-1230

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release includes certain statements that may be deemed "forward-looking statements." All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Forward looking statements in this news release include the anticipated use of proceeds of the Offering. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239734

FAQ

What changes did Max Resource (MXROF) make to its warrants in February 2024?

Max Resource amended its warrants by extending the expiry date from March 28, 2025, to March 28, 2026, and reducing the exercise price from $0.36 to $0.31.

How many warrants are affected by Max Resource's (MXROF) February 2024 amendment?

The amendment affects 14,825,000 warrants that were originally issued on March 28, 2022.

What is the new exercise price for Max Resource's (MXROF) amended warrants?

The new exercise price for the amended warrants is $0.31, reduced from the original price of $0.36.

When do Max Resource's (MXROF) amended warrants expire?

The amended warrants will expire on March 28, 2026, following a one-year extension from the original expiry date.