Azimut Announces Agreements on the Eleonore South and Wabamisk Joint Ventures
Azimut Announces Agreements on the
Eleonore South and Wabamisk Joint Ventures
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 capita
l 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 km
2
) 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 km
2
) 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
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.
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/August2022/08/c2622.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,
[email protected], www.azimut-exploration.com
CO: Azimut Exploration Inc.
CNW 06:30e 08-AUG-22