Azure shares up on WA gold buy

Azure Minerals will gain interests in four Western Australian gold assets from Creasy Group, with initial exploration to be funded by a $4 million capital raising.

Azure will acquire 70 per cent interests in each of the Turner River, Meentheena and Coongan gold projects, as well as a 60 per cent interest in the Andover nickel-copper project.

The company emerged from a trading halt this morning, with shares up 28 per cent to 18 cents.

Managing director Anthony Rovira said Azure had sought to acquire gold and nickel projects in WA due to the severity of the COVID-19 pandemic in Mexico, where the company is seeking to develop several projects including its flagship Ospura zinc-lead-silver asset.

Mr Rovira said while Mexico remained an important core business for Azure, the WA projects had strong potential due to historical exploration results.

“This acquisition enables the company to reduce risk by diversifying across commodities and jurisdictions, giving shareholders exposure to both the hottest gold exploration district in Western Australia and an advanced nickel-copper project,” he said.

An Azure-managed joint venture will be formed once the acquisition, subject to shareholder approval, is completed.

Under the deal, Azure will issue 40 million shares to Creasy Group, which will emerge with a 19 per cent stake in the company – and as Azure’s largest shareholder.

That shareholding includes a participation in Azure’s $4 million share placement, with Creasy to subscribe for 1.2 million shares.

Azure’s current majority shareholder Deutsche Balaton will subscribe for 17 million shares to bring its shareholding interest to 18 per cent.

A total 40 million shares will be issued under the placement (separate to the Creasy acquisition consideration), with new shares priced at 10 cents each.

The placement is being managed by Canaccord Genuity.

Shares in Azure were up 24 per cent at 2:15pm AEST to trade at 16 cents.