The joint-venture arrangement at Aztec Minerals’ (TSXV: AZT) Cervantes project in Mexico is no more. The firm this morning revealed that it has taken a major step in relation to the project, by buying out Kootenay Silver’s (TSXV: KTN) stake in the property.
The purchase will see Aztec acquire Kootenay’s 35% stake in the gold-copper project via the issuance of 10.0 million shares, at a price of $0.25 per each. Upon completion, Kootenay will retain a 0.5% net smelter return royalty on the property, while whole ownership of the project will be held by Aztec.
“We are thrilled to announce this opportunity to consolidate a 100% interest in the Cervantes porphyry gold-copper project and welcome Kootenay Silver as a major shareholder of Aztec. We now look forward to continuing to define the open pit, heap leach gold potential of the porphyry gold oxide cap at the California Zone and evaluating the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap,” commented Aztec CEO Simon Dyakowski.
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The transaction, which is expected to close August 5 following regulatory approvals, is expected to see Kootenay Silver become the largest shareholder of Aztec.
The Cervantes project, found in Sonora State, Mexico, consists of 3,650 hectares of claims that are prospective for gold and copper. Found just 55 kilometres to the west of the Mulatos and La India mines operated by Alamos Gold and Agnico Eagle, respectively, the property is believed to be a driving force behind Alamos’ decision to take a 9.9% stake in the company in May.
Recent drilling at the property conducted earlier this year managed to intersect 0.421 g/t gold over 68.4 metres in hole CAL22-015, 0.87 g/t gold over 152.4 metres in hole CAL22-012, and 0.53 g/t gold over 138.32 metres in hole CAL22-010, amongst other results.
Aztec Minerals last traded at $0.265 on the TSX Venture.
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