Azure Minerals to Sell Mexican Assets for $20 million
THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) is about to be much richer to the tune of $20 million having entered binding, conditional sale agreements to sell its subsidiary companies that own and operate the company’s Mexican precious and base metals projects to Bendito Resources Inc.
On completion of the deal Azure will bank $10 cash and hold the same amount’s worth of equity in Bendito, which intends listing on the Toronto Stock Exchange within 18 months of completion of the transaction with the Alacrán, Oposura and Promontorio projects forming the company’s core assets.
Alacrán, Oposura and Promontorio are located within the Laramide Copper Province, North America’s most prolific copper-producing district.
“This is a great outcome for Azure and our shareholders,” Azure Minerals managing director Tony Rovira said in the company’s ASX announcement.
“We have realised a significant cash return for the assets while retaining exposure to the upside as the projects are further developed.
“We still see potential in these high-quality, advanced-stage projects and it makes sense for them to sit within a dedicated special purpose group focused solely on Mexico, which can take them through development funded by the North American capital markets.
“The team behind Bendito have a successful track record of identifying, acquiring, developing and operating projects, so retaining exposure to these assets that we know so well should be both exciting and rewarding for Azure shareholders.
“With these extra funds, we will accelerate activities on our Andover nickel-copper project in WA which is proving to be a company-maker for Azure as we progress along the dual pathways of growing the mineral resources and advancing the development studies.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: admin@azureminerals.com.au