Azure Minerals sells Mexican assets, shifts Andover exploration up a gear

Azure is all cashed up to advance its Andover nickel-copper-cobalt project in Western Australia after completing the $20m sale of its Mexican precious and base metal assets to Bendito Resources.

The company has received an immediate cash payment of $4m and 11.2 million Bendito shares, which represents about 20% of Bendito, worth a further $4m for the sale.

It will receive a second tranche of $6m in cash and $6m worth of Bendito shares within 18 months.

This follows a variation on the original agreement which brings forward $2m of the share component while deferring $2m of the cash component.

“The injection of these extra funds will enable Azure to continue advancing our Andover nickel-copper-cobalt project through exploration and growing the resource base while progressing the development studies,” Azure Minerals (ASX:AZS) managing director Tony Rovira said.

“Meanwhile, with Bendito dedicated to growing the Mexican projects and supported by funding from the North American capital markets, our significant equity interest in Bendito provides us with good exposure to the upside.”

Unlocking Andover riches

Recent assay results have defined three high-grade shoots of massive nickel sulphides at the Ridgeline nickel-copper-cobalt deposit, which is part of the Andover project.

The company also has two diamond rigs currently undertaking extensional and infill drilling at the Ridgeline deposit, with 53 holes completed as of 18 July for a total of 30,860m of diamond drilling.

Current drilling is focused on extending and defining the Ridgeline deposit, to support the production of a mineral resource estimate.

Azure will then drill other known occurrences of nickel-copper-cobalt sulphide mineralisation at Seaview and Skyline and follow up anomalism at Atrium and Pipeline.

Work is also ongoing to generate and refine additional drilling targets with project-wide geological mapping and rock chip sampling programs underway.

This article was developed in collaboration with Azure Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.