Azincourt Completes Acquisition of Minergia
Advanced Uranium Company with identified resources &
exploration projects in Peru
SASKATOON, SASKATCHEWAN--(Marketwired - Jan 16, 2014) -
AZINCOURT URANIUM INC. ("Azincourt" or "the Company")
(TSX-VENTURE:AAZ ) a Saskatoon based uranium exploration and
development company, announces further to its news release of
November 22, 2013, that it has completed the acquisition of 100% of
the issued shares of Minergia S.A.C. ("Minergia") a private
Peruvian company (the "Acquisition") from Vena Resources Inc.
("Vena") and Cameco Global Exploration Ltd. ("Cameco"). Minergia
owns 100% of the rights and interests in the advanced stage
Macusani and early stage Muñani uranium exploration projects in the
Macusani district of south-eastern Peru covering a combined area of
14,700 hectares.
Acquisition Summary
- Azincourt has purchased 100% of Minergia from Cameco and Vena
for total consideration of $2 million in cash and Azincourt
shares.
- Over $12 million spent by Minergia on project exploration work
between 2007-2011.
- Minergia has defined 18 million lbs U3O8 current mineral
resources (measured and indicated) and 17 million lbs U3O8 inferred
to September 2011.
- Exploration and processing work by Minergia and others in the
Macusani region suggests potential for future low cost
production.
- Additional targets exist on the projects and Azincourt is
committed to advancing the resources, targets and to developing the
Macusani region.
- Vena's Chairman and CEO, Juan Vegarra has joined Azincourt
board as an independent director.
Macusani Project Highlights
- Advanced-stage 4,900 hectare project
- October 2011 NI 43-101 compliant report calculated* in-place
U3O8 resources of: ?ùª5.7 million pounds in the measured
category
- 12.5 million pounds indicated
- 17.4 million pounds inferred
- $12 million of prior exploration work
*Cut-off of 90.72 ppm (0.18 pounds/ton)
Muñani Project Highlights
- Early-stage 9,600 hectare project.
- Uranium mineralization identified in both sandstone and
intermediate volcanic rock outcrops.
- Detailed airborne surveys and ground prospecting complete.
- Initial drill targets already established and prioritized.
Ted O'Connor, the Company's President and CEO, stated,
"Azincourt is excited to start 2014 with such a strong
acquisition in this emerging uranium district. The uranium demand
landscape continues to show signs of strengthening and Azincourt
Uranium will be working with our team in Peru to move this
development project forward at the right pace. This will ensure we
are well placed to benefit from the anticipated demand-driven,
uranium price increase."
Minergia Acquisition
Details
Under the terms of the separate Share Purchase Agreements, the
Company acquired each of Cameco's and Vena's 50% of the issued
capital of Minergia in consideration of C$1,000,000 paid to each of
Cameco and Vena, comprised of:
(i) the issue of 2,525,252 common shares; and
(ii) the payment of C$250,000 in cash.
The common shares issued to both Cameco and Vena are subject to
a statutory hold until May 15, 2014. In addition, the common shares
issued to Vena are subject to voluntary resale restrictions for a
period of one year from the date of issuance, following which
Vena's shares will become freely tradable as to 15% on the 12 month
anniversary of their issuance and an additional 15% on each of the
15th, 18th and 21st and 24th month anniversaries of their issuance
with the remaining 25% on the 27th month anniversary of the
issuance date.
The Acquisition was at arm's length and no finder's fee was paid
in relation to the Acquisition.
Effective as of the closing of the Acquisition, Mr. Juan Vegarra
has joined the Company's board as an independent director and the
Company has granted to Mr. Vegarra 250,000 incentive stock options.
Each option is exercisable by the Mr. Vegarra to purchase one
common share of the Company at a price of $0.27 per common share
for a period of five years from the date of grant, in accordance
with the Company's stock option plan and subject to TSX Venture
Exchange acceptance.
Summary of the Macusani
Project
The following is a summary of the Macusani Project is based upon
a NI 43-101 compliant report authored by Henkle & Associates,
entitled "Updated Technical Report of the Macusani Uranium
Exploration Project", dated October 25, 2011 and addressed to
Vena, which was filed in November 2011 under Vena's SEDAR
profile.
The Macusani Project contains partially drill defined uranium
deposits, and is comprised of nine non-contiguous mineral
concessions covering a combined total area of 4,900 hectares. The
Project is located approximately 650 kilometres southeast of Lima
and about 230 kilometres by road north of the city of Juliaca.
Access to the Project is from the Interoceanico Highway ("IH"), a
tarred road that passes about 11 kilometres, directly to the east
of Minergia's exploration camp. The Company's exploration camp is
located in the pueblo of Isivilla, near the center of the Project
area. Access from the IH, to the concessions is via a network of
gravel roads, all of which are passable by a two-wheel drive
vehicle.
Uranium in the Macusani Project Area is hosted in ignimbritic
volcanic rhyolites, and is found in both fractures and as
disseminated crystals within distinct mineralized zones.
Mineralized zones are correlatable as distinct strata/elevation
related zones, from drill hole to drill hole, much as a supergene
blanket is in a copper deposit. To date, five separate prospects
have been defined containing potentially economic mineralization in
both Level A and Level B rock units within the Macusani Project
area.
Little exploration activity had taken place on the Macusani
Project prior to Vena's involvement in 2006. In 2006, Vena
commenced scintillometer prospecting, radon and surface outcrop
sampling over various IPEN ("Instituto Peruano de Energia Nuclear",
an agency within the Peruvian Ministry of Energy and Mines) uranium
showings.
Since 2006, 232 diamond drill holes (37,958 m) have been drilled
by Minergia in the Macusani region. Based upon drilling and
assaying to date, Henkle & Associates calculated the following
resource estimate over the five drilled prospects on the Macusani
Project:
To view Table 1, please visit the following link:
http://media3.marketwire.com/docs/aaz116.pdf.
The Minergia projects have not seen active exploration drilling
for the past two years and have been on care and maintenance due to
depressed uranium market conditions. Azincourt is working with the
existing Minergia team to develop a meaningful program and budget
to restart active exploration work in Peru. The 2014 plans will
include completing the necessary community agreements and all
required permitting work to recommence diamond drilling of existing
targets on the projects.
Qualified
Person
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed on behalf of the company by
Ted O'Connor, P.Geo., President and CEO of Azincourt Uranium Corp.,
a qualified person.
About Azincourt Uranium
Inc.
Azincourt Uranium Inc. is a Canadian-based resource company
specializing in the strategic acquisition, exploration and
development of uranium properties and is headquartered in
Vancouver, British Columbia. Its common shares are listed on the
TSX Venture Exchange under the symbol "AAZ".
ON BEHALF OF THE BOARD OF AZINCOURT URANIUM INC.
Ted O'Connor, CEO and President
NEITHER THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
This press release includes "forward-looking statements",
including forecasts, estimates, expectations and objectives for
future operations that are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Azincourt. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or
developments may differ materially from those projected in the
forward-looking statements. Such forward-looking information
represents management's best judgment based on information
currently available. No forward-looking statement can be guaranteed
and actual future results may vary materially.
Azincourt Uranium Inc.Dwane BrosseauInvestor RelationsDirect:
604 662 4955dwane@azincourturanium.comwww.azincourturanium.com
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