Azure to accelerate nickel exploration with $37m placement
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Special Report: Azure has received a resounding vote of confidence in its Western Australia exploration strategy with investors committing to a $37m placement.
This is strongly emphasised by the astounding 26.3 per cent premium to the 30-day volume weighted average price (VWAP) that Australian and international institutional investor clients of lead manager Euroz are paying for the 50 million shares they have committed to acquire.
While shares in Azure Minerals (ASX:AZS) have since risen to the point that the placement price of 74c per share represents a 9.8 per cent discount to the last closing price, the result highlights the strong interest in the company.
Managing director Tony Rovira says the strong support justifies the company’s strategy of returning to exploration in Western Australia with the acquisition and joint venture of several nickel and gold projects in the Pilbara from renowned prospector Mark Creasy’s Creasy Group.
“We are very encouraged by the positive response to our fundraising and are now in the strong position of accelerating the exploration of our new projects. These projects tick all the boxes – right location, right commodities, right partner and delivering outstanding results,” he added.
“The first five holes drilled by us at Andover are nothing less than exceptional, with all intersecting substantial widths of nickel-copper sulphide mineralisation. We will immediately move to secure multiple drill rigs for the drill-out of the VC-07 target and to test the other 12 strong electromagnetic (EM) anomalies on the project.
“The funding also allows us the capacity to commence exploration on the Turner River Gold Project, which is along strike of De Grey Mining’s Hemi and other gold discoveries. We are looking to expedite the grant of the exploration licences and start work as soon as possible.”
Nearly two-thirds of the proceeds will be spent on accelerating exploration and carrying out studies at the Andover project in the Pilbara.
A full $15m will be used to accelerate exploration at the large VC-07 target where all five holes drilled to date have intersected massive sulphide mineralisation.
Azure currently has one diamond rig operating at the project and with the exception of a short Christmas break, will continue drilling into 2021.
Its maiden drill program consists of 12 diamond holes totalling 3,000m, the first six of which are intended to test along strike and down dip extensions of the high-grade nickel that Creasy Group had originally intersected.
Newly appointed exploration manager Graham Leaver has also been tasked with securing additional drill rigs to rapidly advance delineation of nickel-copper mineralisation at VC-07 and to test additional regional targets.
Funds have also been earmarked for key environmental impact statements, flora and fauna, heritage, metallurgical and other studies that hint that the company may be onto something serious at Andover.
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.