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Maxtech Ventures Inc

Maxtech Ventures set to buy Panama gold project in famous Red Lake area of Ontario

The Red Lake area has produced over 28 million ounces of high-grade gold in its time and is home to some big mining names

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There is a visible gold occurrence in the northeast part of the project which needs investigation, said Maxtech

Maxtech Ventures Inc (CSE:MVT)(OTCMKTS:MTEHF), the mining exploration group, revealed it was journeying into the gold space with a deal to buy a gold project in the famous Red Lake area of Ontario.

The Vancouver-headquartered company has inked a binding letter of intent with Benton Resources Inc (CVE:BEX) over the latter's Panama gold project.

READ: Maxtech Ventures names Kelly McQuiggan as new finance chief

The Red Lake area has produced over 28 million ounces of high-grade gold in its time and is home to some big mining names including Goldcorp, now Newmont Goldcorp (NYSE:NEM).

The Panama project lies 50km away from and on trend with Great Bear Resources' (CVE:GBR) Dixie project and has excellent exploration and discovery potential within a relatively underexplored area of the camp, says Maxtech.

"The opportunity for Maxtech to explore such an advanced project at this stage of the gold price cycle is very timely," said Peter Wilson, chief executive and director at the company.

"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."

An airborne survey recently has thrown up some priority targets, including a fold around 250m along strike from the Panama Zone which had not been previously identified.

There is also a visible gold occurrence in the northeast part of the project which needs investigation and the property hosts some of the highest unsourced gold grains in glacial till discovered by the Geological Survey of Canada in 1999.

Due diligence for 30 days 

The deal is structured such that Maxtech has 30 days due diligence and then must commit to certain payments over four years, including issuing 2mln shares at  C$0.05 each when the due diligence is complete.

There are also payments in cash or shares of C$100,000 up to the third anniversary. In the fourth year, it must pay C$300,000 in cash or shares.

Over the four years, Maxtech must  also spend a total of C$1 million on exploration to gain 100% of the asset.

Maxtech shares closed 75% higher at C$0.10 yesterday (Monday).

Contact the author at [email protected]

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