Azure Minerals (ASX:AZS) completes sale of Mexican assets – The Market Herald

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  • Azure Minerals (AZS) completes the sale of its Mexican precious and base metals projects to Bendito Resources for $20 million through a combination of cash and stock
  • The company will receive $10 million in cash and $10 million in Bendito stock in two tranches over an 18-month period
  • Bendito confirms receipt of the company’s Mexican assets, which include Alacrán, Oposura and Promontorio, as part of its planned Toronto Stock Exchange listing strategy
  • The transaction ultimately allows the company to focus on the development of its flagship Andover project in Western Australia
  • Azure shares are up 4.76% to trade at 22 cents at 2:08 p.m. AEST

Azure Minerals (AZS) has completed the sale of its Mexican precious and base metals projects to Bendito Resources for $20 million through a combination of cash and stock.

The company will receive $10 million in cash and $10 million in Bendito stock in two tranches over an 18-month period.

Upon completion, the company received an immediate cash payment of $4 million and issued 11.2 million shares of Bendito, or approximately 20% of Bendito’s issued share capital.

A second tranche of $6 million in cash and $6 million in Bendito stock will be issued within 18 months of closing.

Azure Chief Executive Tony Rovira thanked everyone involved in completing the transaction, which he said will create significant value for both parties.

“The injection of these additional funds will allow Azure to continue to advance our Andover nickel-copper-cobalt project through exploration and growth of the resource base while advancing development studies,” said he declared.

“Meanwhile, with Bendito dedicated to growing Mexican projects and backed by funding from North American capital markets, our large stake in Bendito provides us with good upside exposure.”

Bendito has confirmed receipt of the company’s Mexican assets, which include Alacrán, Oposura and Promontorio, as part of its planned Toronto Stock Exchange listing strategy.

It has planned to drill to advance the Alacrán and Oposura projects through intensive drilling and will also undertake resource expansion drilling at Oposura in conjunction with other geotechnical and metallurgical testing to provide an updated preliminary economic assessment. day in about 18 months.

The transaction ultimately allows Azure to focus on developing its flagship Andover project in Western Australia.

Azure shares rose 4.76% to trade at 22 cents at 2:08 p.m. AEST.