Aztec Minerals Arranges CA$3M Strategic Investment With Alamos Gold


Aztec Minerals goes from energy to energy it appears; after a myriad of fantastic drill outcomes at Cervantes, mid-tier producer Alamos Gold, working the Mulatos Gold mine close by obtained and is engaged on a CA$3M strategic funding in the meanwhile.

Simply after releasing intriguing drill outcomes at Cervantes, Aztec Minerals Corp. (AZT:TSX.V; AZZTF:OTCQB) introduced a CA$3M non-brokered personal placement with Alamos Gold, which might be referred to as intriguing for positive as properly. Alamas Gold is working Mulatos, one of many largest heap leach gold mines in Mexico, not that distant from Cervantes. Though Mulatos nonetheless has about 10 years of reserves, and there don’t but look like any direct synergies between the Cervantes challenge and Mulatos operation, it nonetheless is a stamp of approval and an indication of sturdy curiosity in what Aztec Minerals is conducting in the meanwhile.

It’s not daily that you just see a mid-tier producer like Alamos Gold Inc. (AGI:TSX; AGI:NYSE) (“Alamos”) indicating that it intends to buy securities to acquire a 9.9% curiosity in a small exploration junior like Aztec Minerals, so the information launch on Might 16, 2022, undoubtedly stunned the markets. I already contemplated a financing coming quickly in my newest replace, however I didn’t count on this for positive, and undoubtedly not this quickly. Effectively finished by CEO Simon Dyakowski. I requested him to offer some background story to this financing so far as he may disclose, however sadly, he couldn’t share an excessive amount of information because the deal hasn’t closed but: ”Aztec is in a lucky place to have the ability to finance in a tricky market due to our sturdy exploration leads to the Winter 2022 RC drilling Marketing campaign at Cervantes. We’re excited on the prospect of welcoming Alamos Gold as a big strategic shareholder of Aztec. The funding will enable Aztec to advance exploration on the Cervantes Venture over the late Spring and into the Summer season. ”

The non-brokered personal placement would contain the issuing of as much as 10M models at a value of CA$0.30 per unit for gross proceeds of as much as CA$3.0M. Every unit consists of 1 widespread share and one warrant exercisable to buy a further widespread share at an train value of CA$0.40 for a two-year interval following the closing of the personal placement. Because the Aztec shares have been buying and selling round CA$0.26 when this was introduced, the shares could be issued at a premium, which is uncommon as of late with plenty of detrimental sentiment all over the place because of the Fed charge antics, reacting to multi-decade excessive inflation, fueled additional by commodity shortages, initiated by COVID-19 which halted investments for nearly two years, and exacerbated by the continuing Russia-Ukraine battle. In addition to the premium, Alamos was capable of negotiate a full warrant, which is one thing you don’t see fairly often anymore, but it surely appears solely truthful after paying the premium.

Aztec Minerals intends to make use of the online proceeds of the PP to conduct exploration work on its Cervantes Porphyry gold-copper challenge in Sonora, Mexico, and its Tombstone Epithermal gold-silver & CRD silver-lead-zinc-copper-gold challenge in Arizona, USA, as properly for common working capital functions. As a reminder, administration is considering a 5,000m follow-up drill program at Cervantes within the second quarter. Not solely will the near-surface heap leachable mineralization be explored, however a stronger diamond drill rig will lastly be utilized to drill at depth for big porphyry targets, indicated by a big IP chargeability anomaly. Aztec can be finishing up channel sampling and geologic mapping of the brand new drill roads in the meanwhile at California, California Norte, and Jasper, and is increasing floor sampling and mapping on the property generally, in an effort to proceed the 2021 section 1 floor program.

The final drill program has been accomplished, containing 26 holes with 4,649m drilled, and Aztec has nonetheless 4 extra holes to report, positioned on the California Zone, and remaining assays for gap JAS22-001 and the remaining holes are anticipated over the approaching weeks.

As one other reminder, the thrilling factor right here is in fact, that the Cervantes oxides already appear to account for an estimated 1Moz heap leachable gold, however aren’t the one factor Aztec is trying to discover, as it’s also planning a drill program for his or her Tombstone gold-silver oxide challenge (topic to a 75/25 JV with Aztec because the operator) in Arizona for the summer season, additionally enabling them to go after giant porphyry/CRD potential at depth at each tasks. With the financing money, Aztec is enabled to proceed its exploration actions.

Conclusion

Though I had already contemplated financing eventually, this newest announcement stunned buyers and me by the pace and the concerned get together. It’s all the time good to see a mid-tier like Alamos Gold taking a strategic curiosity of 9.9% in a junior. For me, it’s a stamp of approval by an organization that is aware of higher than another kind of investor on the market what the mineralized potential might be at Cervantes. There most likely is an efficient motive they need to sit within the entrance row any further. In addition to this: be mindful Cervantes isn’t the one challenge, and each Cervantes and Tombstone have near-surface oxides plus deep porphyry/CRD potential.  

I hope you will see that this text attention-grabbing and helpful and can have additional curiosity in my upcoming articles on mining. To by no means miss a factor, please subscribe to my free e-newsletter at www.criticalinvestor.eu, in an effort to get an electronic mail discover of my new articles quickly after they’re revealed.

All introduced tables are my very own materials until said in any other case.

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All currencies are in US {Dollars} until said in any other case.

Please word: the views, opinions, estimates, forecasts, or predictions relating to Aztec’s useful resource potential are these of the creator alone and don’t signify views, opinions, estimates, forecasts, or predictions of Aztec or Aztec’s administration. Aztec has not in any method endorsed the views, opinions, estimates, forecasts, or predictions offered by the creator.

The Vital Investor is a e-newsletter and complete junior mining platform, offering evaluation, weblog and newsfeed, and all types of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/challenge administration. Quantity cruncher at challenge economics, in search of high-quality corporations, largely progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and sometimes in search of long-term deep worth. Getting burned prior to now himself at junior mining investments by following overly constructive sources that most of the time averted to say (hidden) dangers or vital flaws, The Vital Investor discovered his lesson properly, and goes a number of steps additional ever since, offering a contemporary, extra in-depth, and significant imaginative and prescient on issues, therefore the title.


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