10/06/2021 - 15:00

Azure doubles down on WA nickel asset

10/06/2021 - 15:00

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Azure Minerals has confirmed plans to sell its Mexican projects, as the company further focuses on advancing its Andover nickel-copper asset near Karratha.

Azure doubles down on WA nickel asset
Azure is focused on advancing its Andover project in the Pilbara. Photo: Tony McDonough

Azure Minerals has confirmed plans to sell its Mexican projects, as the company further focuses on advancing its Andover nickel-copper asset near Karratha.

Led by managing director Anthony Rovira, Azure has made significant progress at Andover since acquiring a 60 per cent stake from mining prospector Mark Creasy in August last year, bringing its exploration efforts to Western Australia.

Azure also gained three gold projects through that deal, located in the Pilbara.

Creasy Group, which owns the remaining 40 per cent interest in Andover, was issued with 40 million shares in return. It remains Azure’s second-largest shareholder, behind German investment company Deutsche Balaton, which has about an 18 per cent shareholding.

Building on work conducted by Creasy in 2018, Azure has since completed at least 43 diamond drill holes and identified two major targets, VC-07 and VC-23, which the company says host significant nickel-copper sulphide mineralisation.

At least 35 holes have been drilled at VC-07, where Azure currently has three rigs on site and hopes to deliver a mineral resource by the end of the year.

The company is also exploring several other targets including VC-18 and VC-41.

Mr Rovira, who was a general manager of Jubilee Mines and key in the Cosmos nickel discovery near Leinster in the late 90s, says Azure remains fully funded for a number of years.

That’s helped by a $37 million capital raising, completed last November.

Azure’s cash balance stood at $34.6 million, as at March 31 this year.

The West Perth business is also using the placement proceeds to explore its 70 per cent interest in each of the gold projects acquired from Creasy Group: Turner River, Meentheena, and Coongan.

Azure wholly owns a fourth gold project, Barton, located 40 kilometres south of Leonora.

Today, the company said it planned to sell its Alacrán silver-gold-copper and Oposura zinc-lead-silver projects in Mexico, having completed a strategic review that began in February.

The review considered options for a full or partial sale of the assets, as well as a potential demerger.

Mr Rovira said Azure had received unsolicited approaches from numerous parties expressing interest in its Mexican assets.

“The review concluded that with the company now clearly focused on advancing the Andover project, that a trade sale of the Mexican assets would provide the best outcome for shareholders,” Azure said today.

“Following an assessment of a number of alternative proposals, Azure has mandated PCF Capital Group to commence a targeted and structured sale process over the next few months.”

Azure’s shares were trading at 27 cents on Thursday, implying a market capitalisation of about $83.2 million.

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