THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) has announced two crucial outcomes in regards to the company’s Promontorio project, located in Chihuahua State, Mexico.
The company has completed the acquisition of 100 per cent of the Promontorio mineral concession and has also negotiated a 24 month extension of an agreement covering the adjoining Hidalgo concession.
Promontorio project Mineral concessions. Source: Company announcement
Under the original option to purchase agreements for the Promontorio and Hidalgo mineral concessions struck in 2008, and the extensions to those agreements granted in 2012, Azure had until 28 April 2014 to exercise these options by making two final payments totalling US$1.5 million plus taxes.
In order to secure and confirm ownership of the high-grade Cascada deposit, Azure exercised its option to purchase the Promontorio concession, making the final option payment to the vendors of US$750,000 plus taxes.
The terms of the revised agreement with the vendors to extend the Hidalgo contract for a further two years remain pretty much the same.
Azure will continue to make half-yearly payments of $75,000 for a further two years, with a final payment of US$600,000 due in April 2016.
“We have very strong relationships with the vendors of Promontorio, and we are pleased to have reached this mutually beneficial outcome,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.
“As a result we now have certainty of ownership of the Promontorio tenement which contains the Cascada deposit and likely extensions, and a further two years to advance exploration on the Hidalgo tenement.
“We intend to start drilling again at Cascada as soon as the company has received the required environmental approvals.”
The Promontorio project comprises four mineral concessions.
Azure has 100 per cent ownership of the Promontorio and surrounding 10,000 hectare Promontorio Extension concessions as well as holding the rights to purchase 100 per cent ownership of the Hidalgo and Magistral concessions.