23/09/2015 - 13:15

Creasy backs Azure raising

23/09/2015 - 13:15

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Junior explorers Azure Minerals and Metals of Africa have tapped investors to raise a combined $4.5 million to bolster their respective projects.

Creasy backs Azure raising
Prospector and Azure stakeholder Mark Creasy. Photo: Attila Csaszar

Junior explorers Azure Minerals and Metals of Africa have tapped investors to raise a combined $4.5 million to bolster their respective projects.

Azure has received commitments for a $1.5 million investment in the business, with existing shareholder and prospector Mark Creasy to subscribe to a placement of 62.5 million shares at 1.6 cents to raise $1 million.

The remaining $500,000 will be taken up by an unnamed New York-based resources fund, at the same price.

Azure will use the proceeds of the raising for ongoing work at its Alacran silver project in Mexico.

“This discovery with high grade silver mineralisation, in a flat layer on top of a hill means any mining should be relatively easy and low cost,” Mr Creasy said.

Managing director Anthony Rovira said the support from Mr Creasy and the US fund was a significant endorsement of the Alacran project.

“We are now well-positioned to undertake the close-spaced drilling program at the Mesa de Plata silver discovery at Alacran and to drill test new silver targets that our ongoing exploration is identifying,” he said.

Tectonic Advisory Partners served as North American agent to Azure on the transaction.

Meanwhile, Metals of Africa plans to raise $3 million through the placement of 66.8 million shares at 4.5 cents each.

The placement will be separated into two tranches, with directors of the company intending to participate in the second tranche.

The funds raised will be used to progress metallurgical test work and a prefeasibility study on its Montepuez Central graphite project in Mozambique.

Morgans acted as lead manager to the placement.

Azure shares were 4.3 per cent lower to 2.2 cents each, while Metals of Africa shares lost 6.2 per cent to 4.5 cents at 1:15pm.

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