| ||Mon Apr 4, 2005|
MAX Options Uranium Project at MacInnis Lake in Northwest Territories; Announces Private Placement of $400,000.
| ||MAX Resource Corp. is pleased to announce that it has entered into an agreement (the "Option Agreement") with Alberta Star Development Corp. (TSX-V:ASX; OTC BB: ASXSF) whereby MAX can earn an interest in the MacInnis Lake Uranium Project in the Northwest Territories, subject to acceptance for filing by the TSX Venture Exchange (the "Exchange"). |
The MacInnis Lake Uranium Project
The MacInnis Lake uranium claim block is comprised of 15 mineral claims totaling 26,184.64 acres and is located in the Nonacho Basin 150 km northeast of Fort Smith, Northwest Territories and 275 km southeast of the city of Yellowknife, Northwest Territories.
The MacInnis Lake area is known to have widespread surface uranium mineralization, and contains 28 known high grade uranium showings that were discovered between 1954 and 1988. Uranium exploration on the MacInnis Lake properties was commenced in 1954 with the discovery of large uranium outcrops and widespread surface uranium mineralization. Exploration continued extensively until 1988'and the results have been reported by the Geological Survey of Canada. Uranium exploration involved companies such as Cominco, Shell, PNC, and Uranerz. The MacIinnis Lake uranium properties are located in the Nonacho Basin, a sandstone terrane of Proterozoic age that rests unconformably on Archean basement formations. This setting is geologically analogous to the Athabasca Sandstone Basin of Northern Saskatchewan.
The MacInnis Lake uranium occurrences are characterized as an Unconformity Type Uranium system. The MacInnis lake area is situated 280 km north of Saskatchewan's Athabasca Uranium Basin, and is considered one of the Northwest Territories most prospective uranium bearing regions. Alberta Star has commenced plans to explore and expand uranium drill targets at MacInnis Lake, with preparations underway for a spring and summer exploration season consisting of regional mapping, trenching, reviewing archived drill data and completing a comprehensive regional airborne magnetic and radiometric survey. Drill targeting will focus on expanding known uranium showings.
Mr. Clancy J. Wendt, P.Geo, who has over 34 years experience in the mining industry and is a Licensed Geologist in the State of Arizona (#18283), has acted as the qualified person as defined in National Instrument 43-101 for the purpose of the technical release of information contained herein relating to the MacInnis Lake Project.
The terms of the Option Agreement with Alberta Star call for payment by MAX of:
The terms of the Option Agreement call for MAX to earn a 25% interest in the MacInnis Lake project upon making the payments in (i) and (ii) above together with the first $1,000,000 in work commitments. MAX earns a further 25% interest when it completes the $2,000,000 in work commitments.
- cash payments totaling $30,000 (being $15,000 upon acceptance of the Option Agreement by the Exchange and $15,000 one year from the date of acceptance);
- the issuance to Alberta Star of 200,000 shares of MAX upon acceptance of the Option Agreement; and
- work commitments totaling $2,000,000 over a five year period (being $750,000 in the first year; $250,000 in the second year; $250,000 in the third year; $250,000 in the fourth year and $500,000 in the fifth and final year).
The MacInnis Lake property is subject to a 2% NSR royalty. Upon full exercise of the Option, the parties agree to enter into a joint venture agreement. Alberta Star will act as Operator on the MacInnis Lake project for the term of the Option Agreement.
The Option to earn an interest in the MacInnis Lake project will complement MAX's current property holdings in the Northwest Territories, the Target 1 and 2 Claims, held jointly with Alberta Star. The Target 1 (1,781.9 acres) and Target 2 (2,530.8 hectares) Claims are located immediately adjacent to Alberta Star's Longtom Lake property in the NWT, where Fronteer Development Group (TSX:FRG), as operator, announced in September 2004 that it had intersected high-grade uranium mineralization.
To satisfy its initial obligations under the Option Agreement, MAX has agreed to a non-brokered private placement of 1,000,000 units at $0.40 per unit. Each unit will consist of one common share and ½ of a non-transferable share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share of MAX for $0.50 per share for a two year period from closing. A finders fee may be paid in accordance with Exchange policies on a portion of this private placement, which is subject to acceptance for filing by the Exchange.
On behalf of the Board of Directors of
MAX Resource Corp.
Tel: (604) 642-0115
The contents of this news release have neither been approved nor disapproved by the TSX Venture Exchange.
This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause MAX's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
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