- Subscription agreement executed with Kerry Resources Logistics (Hong Kong)
- Strategic placement to raise $3,058,125 before costs
- On completion, the subscriber will hold approximately 19.9% of Azzuro’s resultant issued shares
- Funds raised will be applied to exploration and evaluation of Mongolian tenements
Azzuro Resources (ASX: AZ9) has entered into a subscription agreement with Kerry Resources Logistics (Hong Kong) for a strategic placement to raise $3,058,125 to be applied to exploration in Mongolia.
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Kerry Resources Logistics is a member of the Kerry Mining group, which in turn is a member of the Kerry Group of companies, the Hong Kong-based conglomerate founded by Robert Kuok in 1974.
The Kerry Mining group has been active in natural resource exploration and development in Mongolia since the mid-to-late 2000s, including development of the Bayan Airag gold-copper project in Zavkhan province.
“This investment is a transformational step for Azzuro,” Gan-Ochir Zunduisuren, MD of Azzuro Resources, said.
“Kerry Mining Group’s backing gives us the funding and technical muscle to unlock the full potential of both the Red Hill copper-gold VMS system and the Oval copper-nickel-PGE discovery, two high-grade assets in one of the world’s most prospective and under-explored mining regions. It is also a clear vote of confidence in our exploration team and what it has delivered over the past couple of years.”
Mr Zunduisuren said the $3 million investment fully funds our resource definition, metallurgical testwork and initial commercial study at Red Hill project, putting us on a clear path to turn discovery into value.
“Kerry brings strong, locally rooted technical and operating expertise in western Mongolia, and we’re excited to work with them to accelerate Azzuro’s journey from exploration to development.”
Tiffany Nip, authorised representative of the subscriber, said the company had been following Azzuro’s progress in southwest Mongolia for some time and are impressed by the quality of the Oval discovery and the Red Hill copper-gold system.
“Azzuro has built a capable exploration team delivering strong results in a short period. We look forward to supporting the company as it advances resource definition and technical studies, and to contributing our local operating experience to help move these projects forward.”
Earlier this month Azzuro reported the discovery of a new semi-massive to massive sulphide mineralisation zone at Red Hill.
Drillhole MU2613A intersected 7.0m of semi-massive to massive sulphide mineralisation from 72.3m downhole, with visible copper sulphides.
The intersection lies 70m to 80m north of previously drilled massive sulphide copper mineralisation in a predominantly east–west system, further expanding the known copper footprint.
AZ9 was up 7.14% to 1.5¢. Mkt cap $11.48M.
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