Azimut and Rio Tinto Sign Agreements for the Corvet and Kaanaayaa Lithium Properties,
Azimut and Rio Tinto Sign Agreements for the
Corvet and Kaanaayaa Lithium Properties,
James Bay Region, Quebec
TSXV: AZM
OTCQX: AZMTF
LONGUEUIL, QC
,
July 10, 2023
/CNW/ -
Azimut Exploration Inc.
("Azimut" or the "Company")
(TSXV: AZM) (OTCQX: AZMTF) is pleased to announce the signing on
July 7, 2023
of two (2)
Option to Joint Venture Agreements (the "Agreements") with
Rio Tinto Exploration Canada Inc.
("RTEC" or "Rio Tinto") for its wholly-owned
Corvet and Kaanaayaa lithium properties
(the
"Properties"). The Agreements contemplate an aggregate value of up to
C$115
.7 million in
expenditures and cash payments.
The Properties are located in
Quebec's
Eeyou Istchee James Bay region (
see Figures 1 to 3
).
Rio Tinto Exploration Canada is a Canadian subsidiary of Rio Tinto Group (
LSE: RIO, ASX: RIO
), a
leading global mining group focused on finding, mining and processing the Earth's mineral resources.
HIGHLIGHTS
Under the Agreements, Rio Tinto can acquire an initial 50% interest on each of the Properties
from Azimut over four (4) years by funding
$7 million
in exploration expenditures and by making
cash payments totalling
$850,000
per property (combined $14 million in expenditures and
$1
.7 million in payments, including
$250,000
on signing per property). Azimut will be the
operator during this first option phase. Exploration expenditures and cash payments, including a
firm commitment of
$1
.5 million per property in the first 12 months, will initiate following the
lifting of wildfire restrictions in
Quebec
(the "Commencement Date").
Rio Tinto can earn an additional 20% interest over five (5) years with further work expenditures
of
$50 million
per property ($100 million combined). Rio Tinto will act as the operator during this
second option phase.
Azimut holds the right, should it choose, to be funded to production by way of secured loan from
Rio Tinto by granting Rio Tinto an additional 5% interest in the Properties (for a total interest of
75%).
The first-year exploration program will aggressively assess and test the lithium potential of the
Properties (
$1
.5 million per property).
The
Properties
display significant lithium exploration potential supported by regional geoscientific
data and their strategic locations relative to a major emerging lithium district.
The
Corvet Property
(877 claims, 423 km
2
) is 33 kilometres long and straddles a major
tectonic boundary. The main geological features of interest are granitic intrusions surrounded by
paragneiss. The Property covers an outstanding exploration target represented by an extensive
and prominent 26-kilometre-long lithium anomaly in lake sediments coupled with strong cesium,
rubidium, gallium and tin (Cs-Rb-Ga-Sn) footprints.
The
Kaanaayaa Property
(421 claims, 216 km
2
) is 25.6 kilometres long and hosts several
granitic intrusions surrounded by paragneiss and metavolcanics, including ultramafic rocks.
Several coincidental Li-Cs-Rb-Ga anomalies have been identified from detailed multi-element
lake sediment geochemistry.
While the exploration programs under the Agreements will focus on identifying lithium-cesium-
tantalum (LCT) pegmatites, both Properties also have strong potential for intrusion-related gold-
copper and magmatic nickel-copper-cobalt mineralization.
Key terms of the Agreements
Each property is subject to its own Agreement, whereby Rio Tinto can acquire an initial 50% interest
in the property by fulfiling the following conditions over four (4) years:
Funding work expenditures of
$1,500,000
in the first year (firm commitment) and
$5,500,000
in
subsequent years for a total of
$7,000,000
per property.
Making cash payments of
$250,000
on signing within 45 days of the Commencement Date and
$150,000
on each anniversary of the Commencement Date, for a total of
$850,000
per
property.
Upon earning a 50% interest, Rio Tinto can earn an additional 20% by funding work expenditures of
$50 million over five (5) years per property. Rio Tinto will act as the operator during this second
option phase.
Upon Rio Tinto earning a 70% interest, Azimut will have the option to be funded to production by way
of secured loan from Rio Tinto in exchange for an additional 5% interest in the property. At this
stage, the respective interests in the property will be Azimut 25%, Rio Tinto 75%. If exercised, the
loan shall accrue interest at the SOFR + 4.5% per annum, to be paid back from 50% of the cash
flow from production.
The parties are dealing at arm's length. The Agreements remain subject to regulatory approvals by
the TSX Venture Exchange.
This press release was prepared by Dr.
Jean-Marc Lulin
, P.Geo., acting as Azimut's qualified
person within the meaning of National Instrument 43-101.
About Azimut
Azimut is a leading mineral exploration company with a solid reputation for target generation and
partnership development. The Company holds the largest mineral exploration portfolio in
Quebec
. Its
wholly-owned flagship
Elmer Gold Project
is progressing to the initial resource stage in the
James
Bay
region. Azimut also controls a strategic land position for copper-gold, nickel and lithium.
The Company is advancing its major lithium portfolio in the
James Bay
region in three ways
concurrently:
Under option agreements with Rio Tinto (this press release) on the
Corvet
and
Kaanaayaa
Properties
;
Under joint venture agreements with SOQUEM on the
Pikwa
Property
(509 claims), and the
Galinée
Property
(649 claims); and
Under Azimut's self-funded program on the wholly-owned
James Bay Lithium Property
(2,955
claims).
Azimut uses a pioneering approach to big data analytics (the proprietary
AZtechMine™
expert
system) enhanced by extensive exploration know-how. The Company's competitive edge is based on
systematic regional-scale data analysis and concurrently active projects. The Company maintains
rigorous financial discipline and a strong balance sheet, with 79.9 million shares issued and
outstanding.
www.azimut-exploration.com
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.
View original content:
http://www.newswire.ca/en/releases/archive/July2023/10/c9417.html
%SEDAR: 00003284E
For further information:
Jean-Marc Lulin, President and CEO, Tel.: (450) 646-3015; Jonathan
Rosset, Vice President Corporate Development, Tel: (604) 202-7531, [email protected],
www.azimut-exploration.com
CO: Azimut Exploration Inc.
CNW 10:52e 10-JUL-23