- Has option on gold project in prolific Ontario mining district
- But focused mainly on vanadium and manganese
- Experienced management; global reach
What the company does:
Maxtech Ventures Inc (CSE:MVT) (OTCMKTS:MTEHF) is a mining exploration group headquartered in Vancouver, which is focused mainly on vanadium and manganese, for both of which it expects a rise in global demand, but has also recently entered the gold space.
On September 10, the company revealed it had struck a deal to buy the Panama gold project in the famous Red Lake mining area of Ontario.
The seller is Benton Resources Inc (CVE:BEX) and Maxtech has 30 days due diligence and then, if it goes ahead, must commit to certain payments over four years, including issuing 2mln shares at C$0.05 each when the due diligence is complete.
An airborne survey recently identified some priority targets on the property, including a fold around 250m along strike from the Panama Zone. There is also a visible gold occurrence in the northeast part of the project and the property hosts some of the highest unsourced gold grains in glacial till discovered by the Geological Survey of Canada in 1999.
In September last year, the group announced an option agreement with Zimtu Capital Corp and Soraya Jamal to acquire a 100% interest in their Lac Patu vanadium project in Quebec, Canada. Vanadium is used in many industrial applications, including power generation, and in bridges and aircraft manufacture.
To secure the deal and acquire the property over two years, Maxtech agreed to pay the two companies C$185,000 and 3.25 million shares on or before September 30, 2020, plus a 2% net smelter royalty (NSR) on production with Maxtech having the option to buy back half the respective NSR for C$1 million.
How is it doing:
In July this year, Maxtech said it had appointed experienced executive Kelly McQuiggan as its new finance chief. McQuiggan has been leading finance teams in Vancouver for over 10 years with a focus on financial reporting, income tax, raising capital and corporate structures.
The Panama gold project deal is notable because the Red Lake area has generated 28 million ounces of the precious metals in its time, and is the home of several high-grade discoveries during the last several years and is host to the likes of major Newmont Goldcorp (NYSE:NEM), but also smaller Pure Gold Mining (LON:PGM) and Great Bear Resources (CVE:GBR).
Pure Gold Mining, for example, is now starting to build its Madsen gold mine and the surface engineering and procurement (E/P) contract has been awarded. The project spans over 4,600 hectares and houses two former mines, which previously generated 2.6 million ounces of gold. First gold at this project is earmarked for late 2020.
Maxtech's Panama project lies just 50km away from and on trend with Great Bear Resources' (CVE:GBR) Dixie project, where multiple gold discoveries have been unearthed, including at high grades. Shares in Great Bear have risen 2.44% in the year to date.
- Start of exploration at projects
- Results of drilling and/or exploration
What the boss says:
In a statement announcing the Panama Gold deal, Maxtech's chief executive and director Peter Wilson said: "The opportunity for Maxtech to explore such an advanced project at this stage of the gold price cycle is very timely," said Wilson, also referencing the uptick in gold prices currently due to the global economic uncertainty."