Aztec Minerals (TSXV: AZT) has completed its previously announced full acquisition of its Cervantes Property in Sonora, Mexico. The flagship property was previously held via a joint venture with Kootenay Silver (TSXV: KTN).
Consideration for the 35% stake in the asset consisted of 10.0 million common shares of Aztec, which were issued at a price of $0.25 per each. Kootenay has also retained a net smelter return royalty of 0.5% on the property.
As a result of the transaction, Kootenay now becomes classified as an insider of Aztec, with the firm owning an 11.85% stake in the company via 10.7 million common shares. The deal makes Kootenay the largest shareholder of the company, after Alamos Gold whom earlier this year took a 9.9% position in the firm.
The Cervantes property is a gold-copper project found just 55 kilometres west of the Mulatos and La India mines operated by Alamos Gold and Agnico Eagle. The property earlier this year was subjected to a phase two drill program, which saw 26 holes drilled over 4,649 metres in aggregate. Highlight results include 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, 0.53 g/t gold over 138.3 metres in hole CAL22-010, and 1.49 g/t gold over 136.8 metres in hole CAL22-005.
Aztec Minerals last traded at $0.25 on the TSX Venture.
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