Azarga Metals Draws Final Tranche of Baker Steel Investment
AZARGA METALS CORP.
UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA
www.azargametals.com
FOR IMMEDIATE RELEASE
12 August 2019 TSX-V: AZR
AZARGA METALS DRAWS FINAL TRANCHE OF BAKER STEEL INVESTMENT
AZARGA METALS CORP. ("Azarga Metals" or the “ Company”) (TSX-V:AZR) is pleased to
announce that Baker Steel Resources Trust Ltd. (“ BSRT”) has funded the second and final
tranche of US$2 million pursuant to the Investment Transaction announced on 10 April 2019.
The funds from BSRT will be used to fund the ongoing exploration program on the Unkur Copper-
Silver Project in Eastern Russia. Magnetic and induced polarization geophysical surveys are
already underway and will continue through September. Following this work, an approximate
6,000-meter diamond drilling program wil l be initiated. The combined program represents the
largest physical exploration program undertaken on Unkur since Azarga Metal’s acquisition of the
Unkur project in 2016. The goal of the program is to considerably expand the known mineralized
envelope at Unkur.
As part of Investment Transaction, o n August 22, 2019, the Company will issue 1,108,333
common shares to Alexey Mikhaylovskiy (the “Finder”) as a finder’s fee for his role in the
Investment Transaction. The Finder is entitled to 5% of the valu e of each tranche as it is drawn
by the Company by the issue of common shares of the Company at a fixed conversion rate of
1.33 and a share price of C$0.12.
Prior to drawdown of the second tranche of US$2 million, assuming BSRT had converted only
the first tranche of US$1 million and all related interest (at the conversion price of $0.14 per
common share) at maturity (December 31, 2022), had exercised all of the 13,490,414 warrants
issued to it in connection with the first tranche (each warrant exercisable for 2 years, at an exercise
price of C$0.17 per common share), (iii) an exchange rate of US$ = C$1.3221; and (iv) using a
conversion price for the interest of C$0.07, which was the last closing price of the common shares
of Company on August 9, 2019, BSRT would have beneficially owned and controlled an
aggregate of 28,401,447 common shares of the Company, representing an aggregate beneficial
ownership interest of approximately 23.8% of the issued and outstanding shares of the Company
(post-issuance of the shares but excluding the shares issuable to the Finder).
Following drawdown of the second tranche and assuming BSRT converted all of the US$3 million
owing to it (together with the other assumptions referred to above), BSRT would beneficially own
and con trol an aggregate of 58,540,152 common shares of the Company, representing an
aggregate beneficial ownership interest of approximately 39.16% of the issued and outstanding
shares of the Company (post -issuance of the shares but excluding the shares issuable to the
Finder) and an increase of 15.36% from prior to drawdown of the second tranche.
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AZARGA METALS CORP.
UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA
www.azargametals.com
About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company that owns 100% of the Unkur
Copper-Silver Project in the Zabaikalsky administrative region in eastern Russia. Unkur is a
copper-silver discovery of global significance. On completion of a first phase of exploration in
2016-2018, the Company reported an Inferred Resource of 62 million tonnes at 0.53% copper
and 38.6g/t silver for the project (see news release 15 October 2018). The Resource remains
open in both directions along strike and down-dip.
BSRT, Arnold House, St Julians Avenue, Guernsey, GY1 1WA, provided the second advance
under the Investment Transaction for investment purposes. Depending on market conditions and
other factors, BSRT may from time to time acquire and/or dispose of sec urities of the Company
or continue to hold its current position. A copy of the early warning report required to be filed with
the applicable securities commissions in connection with the drawdown of the second advance
will be available on SEDAR at www.sedar.com and can be obtained by contacting Tina Isnardi at
+44 (0) 20 7389 0009.
AZARGA METALS CORP.
"Michael Hopley"
Michael Hopley,
President and Chief Executive Officer
For further information please contact: Doris Meyer, at +1 604 536 -2711 ext. 6, visit
www.azargametals.com, or follow us on Twitter @AzargaMetals. The address of the head office
of Azarga Metals is Unit 1 - 15782 Marine Drive, White Rock, BC V4B 1E6, British Columbia,
Canada.
Neither the 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.
Cautionary Statement:
This news release contains forward -looking statements that are based on the Corporation's current
expectations and estimates. Forward -looking statements are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that could cause actual events or results
to differ materially from estimated or anticipated events or results implied or expressed in such forward -
looking statements. Such factors include, among others: the actual results of current p lanned exploration
activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be
refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices .
There may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events or results or otherwise.
Forward-looking statements are not a guarantee of future performance and accordingly undue reliance
should not be put on such statements due to the inherent uncertainty therein.
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AZARGA METALS CORP.
UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA
www.azargametals.com