TSXV: AZM
OTCQX: AZMTF
LONGUEUIL, QC, Aug. 8, 2022
/CNW Telbec/ - Azimut Exploration Inc. ("Azimut" or the
"Company") (TSXV: AZM) (OTCQX: AZMTF) is pleased to announce the
execution of two definitive agreements in respect of the Eleonore
South and Wabamisk joint ventures in the Eeyou-Istchee James Bay
("James Bay") region of Quebec:
- Eleonore South Joint Venture - Sale by
Azimut of its 23.77% participating interest in the Eleonore South
Joint Venture (the "ELSJV") to affiliates of (i) Newmont
Corporation (TSX: NGT; NYSE: NEM) and (ii) Fury Gold Mines Limited
(TSX: FURY; NYSE: FURY); and
- Wabamisk Joint Venture - Transfer by an
affiliate of Newmont to Azimut of a 51% participating interest in
the Wabamisk Joint Venture (the "Wabamisk JV"), resulting in
Azimut regaining 100% of the Wabamisk Property.
The ELSJV is considered a non-core asset for the Company after
it announced a gold discovery on the 100%-owned Elmer Property in
January 2020. Azimut is actively
delineating the Patwon Gold Zone on the Elmer Property and
advancing a maiden NI 43-101 mineral resource estimate (see
Azimut's press release of July 28,
2022).
The Wabamisk JV is a gold property strategically located in the
James Bay region. Regaining 100%
interest in this property will enable Azimut to reassess its
excellent exploration potential and business options.
Principal Terms and Conditions of
the Transactions
Eleonore South Joint
Venture
Pursuant to an agreement dated August 8,
2022 between Azimut, two affiliates of Newmont Corporation
(together with Newmont Corporation, "Newmont"), and an
affiliate of Fury Gold Mines Limited (together with Fury Gold Mines
Ltd, "Fury"), Azimut has agreed, subject to certain
conditions, to sell to Newmont and Fury, on a pro rata
basis, its 23.77% participating interest in the ELSJV (the
"ELSJV Transaction").
In connection with the ELSJV Transaction, Azimut will receive
from Newmont an aggregate of 2.9 million common shares of Azimut,
which are beneficially controlled by Newmont and represent
approximately 3.5% of the 82,193,844 common shares of Azimut
presently issued and outstanding. Immediately upon closing of the
ELSJV Transaction, such 2.9 million common shares will be returned
to Azimut's treasury for cancellation, thus resulting in the
reduction of Azimut's common shares issued and outstanding to
79,293,844.
The return to treasury and cancellation of the 2.9 million
shares will result in an increase of approximately 3.7% of
shareholders' respective interests in Azimut's share capital
and, indirectly, in Azimut's assets, including its 100%-owned
flagship Elmer Property.
Upon closing of the ELSJV Transaction, the participating
interests in the ELJV will be held by Fury (50.022%) and Newmont
(49.978%), with Fury acting as operator.
Completion of the ELSJV Transaction is subject to certain
conditions precedent, including the approval of the TSX Venture
Exchange, and is expected to close in the third quarter of
2022.
Wabamisk Joint
Venture
Pursuant to an agreement dated August 8,
2022, Newmont has exercised its right to voluntarily
withdraw from the Wabamisk JV in consideration for the payment by
Azimut of a nominal amount of $1 and
Newmont will cease to be a participant in the Wabamisk JV (the
"Wabamisk Transaction"). Upon closing of the Wabamisk
Transaction, Azimut will own a 100% interest in the 333 mining
claims comprising the Wabamisk Property. The Wabamisk Transaction
is scheduled to close by about September 6,
2022.
About the Eleonore South
Property
The Eleonore South Property (282 claims, 147.6 km2)
is located in a highly prospective part of the Eleonore Gold Camp,
about 10 kilometres south of Newmont's Eleonore gold mine. The
Property is also adjacent to the Cheechoo gold deposit, located on
Sirios Resources Inc's Cheechoo Property, which lies to the
northeast of the ELSJV.
About the Wabamisk
Property
The Wabamisk Property (333 claims, 176.2 km2) is a
gold project located about 70 kilometres south of Newmont's
Eleonore gold mine and has a comparable geological context and
geochemical footprint.
Azimut initially acquired the claims by map designation in 2005
following its James Bay-scale
predictive modelling for gold. Wabamisk was optioned to Placer Dome
in 2005 before it was transferred to Goldcorp Inc. which was
then acquired by Newmont. A substantial amount of quality
exploration work totalling $5.7
million in expenditures has been conducted by the partner.
Significant prospect discoveries include the GH Prospect
(2.27 g/t Au over 4.3 m
within an envelope grading 0.7 g/t Au and 0.39% Sb over
19.0 m), which remains totally
open (see press release of September 14,
2010). Several other extensive target zones have been
identified and can rapidly reach the drilling stage.
Qualified Person
This release has been prepared by Dr. Jean-Marc Lulin, P.
Geo., as Azimut's Qualified Person under National Instrument
43-101.
About Azimut
Azimut is a leading mineral exploration company with a solid
reputation for target generation and partnership development.
Azimut is actively advancing its wholly-owned flagship Elmer Gold
Project to the initial resource stage in the James Bay region.
Azimut uses a pioneering approach to big data analytics (the
proprietary AZtechMineTM expert system), enhanced
by extensive exploration know-how. Azimut's competitive edge is
based on systematic regional-scale data analysis and concurrently
active projects. Azimut maintains rigorous financial discipline and
a strong balance sheet.
Cautionary note regarding
forward-looking statements
This press release contains forward-looking statements, which
reflect Azimut's current expectations regarding future events. To
the extent that any statements in this press release contain
information that is not historical, the statements are essentially
forward-looking and are often identified by words such as
"anticipate", "expect", "estimate", "intend", "project", "plan" and
"believe". The forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. There are many factors that could cause
such differences, particularly volatility and sensitivity to market
metal prices, impact of change in foreign currency exchange rates
and interest rates, imprecision in reserve estimates, environmental
risks including increased regulatory burdens, unexpected geological
conditions, adverse mining conditions, changes in government
regulations and policies, including laws and policies, and failure
to obtain necessary permits and approvals from government
authorities, as well as other development and operating risks.
Although Azimut believes that the assumptions inherent in the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this document. Azimut disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise, other than as
required to do so by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Azimut Exploration Inc.