***At the request of IIROC the Company wishes to clarify specific disclosure in its March 16, 2017 news release. Readers should disregard the disclosure in the earlier release.
The Buriturama Mine is located in the northern portion of the State of Bahia, 862 km from Porto de Aratu with access to railroad, port facilities and infrastructure. The Buriturama Mine has significant historical mining records as well as a current Gia (trial mining license) which authorizes mining and processing of mineralized materials. Small scale mining has been undertaken on the project and there are outcrops located throughout the project area as well as mining pits. An application has been submitted to Departmento Nacional de Proucao Mineral (“DNPM”) for a Lavra licence which provides for unlimited mining. The company will do both technical and legal due diligence on the asset prior to signing a definitive agreement.
Vale’s Mina do Azul Mine is situated approximately 100km’s north of the Buriturama Mine in Bahia, and is responsible for a large percentage of Vale’s manganese output. Vale SA is the largest manganese producer in Brazil and the Mina do Azul Mine is recognized internationally for its mineralized materials which contains high concentrations of manganese and a high manganese-iron ratio.
The markets for manganese mineralized materials and ferroalloys are highly competitive. High-grade manganese competes on a global seaborne basis while low-grade mineralized materials competes on a regional basis. The ferroalloy market is characterized by a large number of participants who compete primarily on the basis of price. The competitive factors affecting this market are the costs of the mineralized materials, electricity, logistics, and reductants.
Peter Wilson, Maxtech CEO, said, “We will begin the due diligence process immediately. The Plantiminas Empreendimentos Rurais Ltda. strategic partnership in the Buriturama Mine will enable Maxtech to build vertical manganese operation in Brazil.”
The Company also announces that pursuant to its stock option plan it will issue 1,000,000 options to certain officers, directors and consultants at a price of $0.57 cents per share. The options granted are exercisable up to five years from the issue date.