Azimut Announces a Reduction in Outstanding Shares by 3.5% with the Closing of the Eleonore South Sale Transaction
Azimut Announces a Reduction in Outstanding
Shares by 3.5% with the Closing of the
Eleonore South Sale Transaction
TSXV: AZM
OTCQX: AZMTF
LONGUEUIL, QC
,
Sept. 9, 2022
/CNW Telbec/ -
Azimut Exploration Inc.
("
Azimut
" or the
"
Company
") (TSXV: AZM) (OTCQX: AZMTF) is pleased to announce the closing of two
transactions in respect of the Eleonore South and Wabamisk properties in the Eeyou-Istchee James
Bay region of
Quebec
(see press release of
August 8, 2022
).
The Eleonore South transaction involved the Company exchanging its interest in the Eleonore South
joint venture ("
ELSJV
") for 2.9 million of Azimut's issued and outstanding common shares
("
Shares
"), which Azimut cancelled upon acquisition. In addition, the reduction in Shares resulted in
Agnico Eagle Mines Limited ("
Agnico Eagle
") having an approximately 10.09% ownership interest in
the Shares. Azimut also announces that it has entered into an amended and restated investor rights
agreement which provides Agnico Eagle with certain rights as described below.
Eleonore South Transaction
Azimut sold its 23.77% participating interest in the ELSJV to affiliates of (i) Newmont Corporation
(TSX: NGT) (NYSE: NEM) and (ii) Fury Gold Mines Limited (TSX: FURY) (NYSE: FURY).
In consideration for the sale of its interest in the ELSJV, Azimut received 2.9 million Shares that
were directly or indirectly controlled by Newmont. The return of these Shares to treasury required
their cancellation, which reduced the number of issued and outstanding Shares to 79,293,844. This
cancellation resulted in a reduction in the Company's issued and outstanding Shares by
approximately 3.5% and consequently results in an increase of approximately 3.7% of shareholders'
respective interests in Azimut, including the 100%-owned flagship Elmer Property.
The ELSJV was considered a non-core asset for the Company after it announced a gold discovery
on the 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.
Wabamisk Transaction
Newmont has exercised its right to voluntarily withdraw from the Wabamisk joint venture and ceases
to be a participant. In connection with such withdrawal, Newmont transferred its 51% participating
interest in the Wabamisk joint venture to Azimut, resulting in Azimut regaining a 100% interest in the
333 mining claims forming the Wabamisk Property.
The mineral rights transfer forms for the Eleonore South and Wabamisk transactions have been filed
with the
Ministère de l'Énergie et des Ressources naturelles
(Québec).
Strategic Investor
As a result of the cancellation of 2.9 million Shares in connection with the Eleonore South
transaction, Agnico Eagle's ownership of Azimut's Shares increased from approximately 9.74% to
10.09%.
Since 2020, Agnico Eagle has participated in three of the Company's financings
(see press releases
of
February 26, 2020
,
June 23, 2021
, and
July 16, 2021
regarding such financings)
. Azimut's
management is pleased by Agnico Eagle's continued interest in the Company's progress on the
Elmer Gold project.
Immediately following the closing of the Eleonore South transaction, Agnico Eagle and Azimut
entered into an amended and restated investor rights agreement pursuant to which, among other
things, Agnico Eagle was granted the right to participate in future equity issuances in order to
maintain its
pro rata
ownership in Azimut at the time of such issuance or to acquire up to a 12%
ownership interest in Azimut.
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
AZtechMine
TM
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, with 79.3 million shares issued and outstanding.
www.azimut-exploration.com
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.
View original content:
http://www.newswire.ca/en/releases/archive/September2022/09/c0399.html
%SEDAR: 00003284E
For further information:
Jean-Marc Lulin, President and CEO, Tel.: (450) 646-3015 - Fax: (450)
646-3045; Jonathan Rosset, Vice President Corporate Development, Tel: (604) 202-7531,
CO: Azimut Exploration Inc.
CNW 13:15e 09-SEP-22