Azimut Exploration Inc. and SOQUEM expand their Strategic Alliance in Quebec
TSX VENTURE: AZM
LONGUEUIL,QC and VAL-D'OR, QC, Feb. 25, 2019 /CNW Telbec/ - Azimut Exploration Inc. ("Azimut" or the "Company") (TSXV: AZM) and SOQUEM Inc. ("SOQUEM"), a subsidiary of Ressources Québec, are pleased to announce the execution of a letter agreement concerning major developments in their strategic alliance in the Province of Quebec.
Highlights of the transaction (see figure)
- New Strategic Alliance in Nunavik to advance three major copper-gold properties through substantial exploration programs.
- Amendments to the existing Strategic Alliance in James Bay related to six gold properties explored by the Alliance since 2016.
This agreement follows the success achieved with the James Bay Alliance since 2016. The Azimut-SOQUEM partnership relies on a sound work base that includes new technologies, targeted management and the exploration of new territories. A key component to its success is the development of close ties with the local communities of Nunavik and James Bay-Eeyou Istchee.
The expanded alliance will combine Azimut's big data analytics expertise in mineral exploration and SOQUEM's mining development expertise in Quebec. This innovative approach will advance properties having the footprint of potential mineral districts in the Plan Nord region of Northern Quebec. This new alliance should add considerable value to the region's mineral potential and improve its attractiveness to the global mining industry. The letter agreement also sets out the conditions for additional predictive modelling elsewhere in Quebec.
1) New Strategic Alliance in Nunavik
The principal terms of the new alliance in Nunavik are as follows:
- First Option ($16M for 50%): SOQUEM will have the option to earn an initial 50% interest in the Rex-Duquet, Rex South and Nantais properties by investing $16 million in exploration work during a period of four (4) years, the first two (2) years being a firm commitment of $4 million each year.
- Second Option ($8M and PEA for additional 10%): SOQUEM will have the option to earn an additional 10% interest in each designated property (for a total 60% interest in each such property) by investing $8 million per designated property during a period of two (2) years and delivering a preliminary economic assessment ("PEA").
- Azimut will be the operator of the Alliance.
Azimut has defined district-scale copper-gold exploration targets on its Rex-Duquet, Rex South and Nantais properties where numerous gold and polymetallic prospects have been identified by the Company since 2010 (see press release dated January 16, 2018). The high-quality of these targets combined with Azimut's data coverage will allow these projects to quickly reach the drilling stage.
2) Amendments to the Strategic Alliance in James Bay
SOQUEM and Azimut have acquired and reported substantial exploration results since the beginning of their alliance in the James Bay region of Quebec (see press release dated September 26, 2016). This includes the discovery of the InSight Prospect (Au-Ag-Cu) on the Munischiwan Property (see press releases dated October 25, 2018 and December 5, 2018), the discovery of the Hyperion Prospect (Au-Co-As) on the Pikwa Property (see press releases dated November 6 and 27, 2018), and other encouraging results on the Pontois and Galinée properties (see press releases dated November 8 and 13, 2018).
The amended terms of the existing strategic alliance in James Bay are as follows:
- A 50% back-in option for Azimut that will come into effect once SOQUEM has earned a 100% interest in four (4) high-potential gold properties (Munischiwan, Pikwa, Pontois and Desceliers) pursuant to the terms of the existing strategic alliance. Specifically, Azimut will have the option to regain a 50% interest in the subject properties by conducting a total investment of $3.31 million in exploration work during a period of three (3) years, representing the same amount initially invested by SOQUEM under the existing strategic alliance.
- Azimut will remain operator during this earn-in option period, which will be transferred to SOQUEM thereafter.
- Azimut and SOQUEM will each retain a 50% interest in the Galinée and Dalmas properties. Azimut will remain operator on these projects.
- SOQUEM will relinquish its exclusive rights to acquire an interest in other properties wholly owned by Azimut (Duxbury, Kukamas East, Corvet and Synclinal).
The transaction remains subject to regulatory approvals by the TSX Venture Exchange and the execution of definitive agreements between SOQUEM and Azimut.
This press release was prepared by Dr. Jean-Marc Lulin, P.Geo., acting as Azimut's qualified person under National Instrument 43-101.
SOQUEM, a subsidiary of Ressources Québec, has a mission to encourage the exploration, discovery and development of mining properties in Quebec. SOQUEM also contributes to maintaining strong local economies. Proud partner and ambassador for the development of Quebec's mineral wealth, SOQUEM relies on innovation, research and strategic minerals to be well positioned for the future.
Azimut is a mineral exploration company whose core business is centred on target generation and partnership development. The Company uses a proprietary pioneering approach to big data analytics (AZtechMine expert system) enhanced by comprehensive exploration know-how. Azimut maintains rigorous financial discipline and has 53 million shares outstanding.
Azimut holds a strategic position for gold and base metals in Quebec totalling 29 properties comprising 7,448 claims or 3,660 km2. Since 2003, Azimut has built considerable targeting and operational experience throughout the vast James Bay and Nunavik regions.
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.