- Azure Minerals (AZS) is set to partially acquire several projects in Western Australia through recently announced agreements with the Creasy Group
- For 40 million fully paid ordinary shares, Azure will take a 60 per cent stake in the Andover Nickel-Copper Project
- The company will also acquire 70 per cent interests in the Turner River, and Meentheena and Coongan gold projects
- While Azure assures it’s committed to the Alacrán Project in Mexico, COVID-19 disruptions have led the miner to seek value in other regions
- Azure has also announced a $4 million placement through the issue of 40 million shares at 10 cents each
- This will fund exploration in WA and Mexico as well as cover working capital and capital raise costs
- Company shares are up a healthy 28 per cent and trading for 16 cents each just before market close
Azure Minerals (AZS) has entered into two tenement sale and exploration joint venture agreements with entities controlled by mining prospector, Mark Creasy.
One of the agreements is for Azure to acquire a 60 per cent interest in the Andover Nickel-Copper Project and the other is to acquire 70 per cent interests in the Turner River, and Meentheena and Coongan gold projects. These projects are located in the Pilbara region of Western Australia.
Azure will issue the Creasy Group, or its nominee, 40 million fully paid ordinary shares, however, the issue of these shares is subject to shareholder approval.
The company will solely fund exploration and free-carry the Creasy Group’s interests under both agreements.
Should the transaction go ahead, Azure Minerals will own a 70 per cent interest in the Turner River Project while the Creasy Group will hold the remaining 30 per cent. The same goes for the Meentheena and Coongan gold projects.
The acquisition of the Andover Nickel-Copper Project will see Azure hold a 60 per cent interest and the Creasy Group will own the remaining 40 per cent.
“Due to the severity of the COVID-19 pandemic in Mexico and the uncertainty of future field operations, Azure sought gold and nickel projects in Western Australia to enable the company to continue exploration activities,” Managing Director, Tony Rovira said.
Azure owns the Alacrán Project in Mexico and had to pause operations due to COVID-19. While operations have been able to resume (under certain guidelines), the company wants to continue exploring less affected areas.
“It’s important for our shareholders to understand that our projects in Mexico remain an important core business for the company, however, these new projects are an exceptional opportunity to explore quality ground in partnership with a proven world-class mine-finder,” Tony said.
The Placement
The company has received binding commitments from institutional and sophisticated investors to raise $4 million. Azure will issue 40 million shares at 10 cents each through a share placement.
These funds are going towards the exploration projects at the soon-to-be acquired West Australian projects, exploration at Alacrán, for working capital and to pay the costs of the capital raising.
The miner’s largest shareholder, Deutsche Balaton Aktiengesellschaft, will participate in the placement. This is subject to shareholder approval.
However, Azure Minerals will soon see a shift in its largest shareholder as the Creasy Group has confirmed it will subscribe for 1.2 million shares.
Once the placement has been approved and acquisition transactions have gone through, the Creasy Group will become Azure’s largest shareholder with a 19.1 per cent interest.
The projects
The Turner River Gold project is located adjacent and along strike to De Grey Mining’s (DEG) Mallina Project. The Mallina Project is known to host 2.2 million ounces of gold and the renowned Hemi gold discovery.
The Andover Project hosts nickel and copper mineralisation that was discovered by the Creasy Group in 2018.
During that year, the Creasy Group conducted drilling which returned significant grades. These include seven metres at 2.62 per cent nickel and 0.65 per cent copper within 26 metres at 1.03 per cent nickel and 0.46 per cent copper from 43 metres.
No follow-up drilling has taken place since this discovery.
The potential continues at the Meentheena Project which was drilled for epithermal gold mineralisation by the Creasy Group. Furthermore, the Coongan Project adjoins Novo Resources’ Beatons Creek gold project.
Company shares are up a healthy 28 per cent and trading for 16 cents each just before market close.