Max Resource Corp. said Feb. 26 that it signed a letter of intent to acquire private firm Copperbelt Minerals Corp., which holds the Copperbelt copper project in Colombia, in a cash and stock deal.

The project comprises four claims and 21 exploration license applications totaling 40,000 hectares, and also includes the historic Cerro de Cobre mine.

Max Resource is required to issue 12 million shares to the vendors upon closing and pay a total of about US$1.1 million in stages over a three-year period.

Certain Copperbelt Minerals shareholders, meanwhile, will collectively retain a 3% net smelter return royalty on the assets, half of which can be repurchased by Max Resource for US$3 million at any time before production.

The parties expect to sign a definitive agreement by March 30.