AZINCOURT ENERGY CORP.
(“
Azincourt” or the “
Company”)
(TSX.V: AAZ, OTC: AZURF), is pleased to announce
that it has reached an agreement with 1177865 B.C. Ltd. (the
“
Vendor”) to complete the acquisition of all
rights to a series of three uranium-lithium exploration projects
(collectively, the “
Projects”) located in the
Picotani volcanic field in Carabaya and San Antanio De Putina
provinces, Puno region, in southeastern Peru.
The Projects, collectively known as the Escalera
group, cover a combined area of 7,400 hectares of prospective
exploration targets for volcanic-hosted supergene/surficial lithium
and uranium on the Picotani plateau. The land package consists of
the Escalera project comprising six concessions totaling 5,500
hectares, the Lituania concession covering 899.97 hectares and the
Condorlit concession covering 999.97 hectares.
The Company currently holds the option to
acquire the Projects, which is exercisable by completing a series
of cash payments and share issuances to the Vendor and incurring
certain exploration expenditures on the Projects. The Company has
previously completed cash payments and share issuances to the
Vendor to maintain the option in good standing and was required to
issue a further 1,000,000 common shares, complete a cash payment of
$350,000 and incur exploration expenditures of $2,500,000 in order
to exercise the option and acquire the Projects. Under the
terms of the agreement reached with the Vendor, the Company has
agreed to exercise the option immediately and to issue 10,000,000
common shares (the “Consideration Shares”) to the
Vendor. In consideration for the issuance of the Consideration
Shares, the Vendor has agreed to waive all further cash payments
and expenditures required under the option and to assign ownership
of the Projects to the Company.
“We believe acquiring these Projects outright
through a non-cash arrangement and completing the acquisition ahead
of schedule is a good strategic move for the Company,” said Alex
Klenman, President and CEO. “We like the exposure to both the
lithium and uranium exploration targets these Projects contain. The
acquisition also removes some cash obligations on the horizon. Our
early exploration efforts in Peru were positive, particularly at
Escalera. We were able to validate some highly prospective ground
for both uranium and lithium mineralization. We are going to plan
follow up exploration phases now and look to get back on the ground
there later this year,” continued Mr. Klenman.
Following issuance of the Consideration Shares,
the Company will hold all rights to the Project, subject to a
one-and-one-half percent net smelter returns royalty retained by
the Vendor. The agreement reached with the Vendor will allow
the Company to acquire the Projects, while conserving available
capital and avoiding the need to undertake exploration work at the
Projects during the ongoing COVID-19 pandemic. The issuance
of the Consideration Shares to the Vendor to complete the exercise
of the option remains subject to the approval of the TSX Venture
Exchange. Upon issuance, the Consideration Shares will be
subject to a four-month-and-one-day statutory hold period in
accordance with applicable securities laws.
The Company will issue a further news release
once the Consideration Shares have been issued and the Projects
have been acquired.
About the Escalera Group
In Late 2018 Company consultants completed a
comprehensive reconnaissance-scale prospecting and geological
interpretation program on the three Puno, Peru, concession groups:
Escalera, Lituania & Condorlit (collectively, “The Escalera
Group”).
Sampling at Escalera identifies two new uranium
prospective areas measuring an estimated 4.5 and 2.0 kilometres in
length. Highlight samples returned 8,061 ppm, 6,812 ppm, 6,126 ppm,
3,560 ppm and 3,438 ppm uranium (U3O8). 11 rock samples returned
above 1,000-ppm uranium (0.12% U3O8). *
The maiden reconnaissance survey focused on the
three separate project areas, covering much of the combined 7,400
hectares underlain by the target volcanic debris flow rocks. Field
crews successfully identified two areas for prospective uranium
mineralization on the large Escalera property, including clusters
of prospective uranium mineralization over an area extending more
than four kilometers.
Observed surface radioactivity combined with
uranium-in-rock laboratory results has shown that the Escalera
Property is a priority exploration target. In addition, the
southwest part of the Escalera property contains a notable cluster
of lithium-in-rock results ranging 290 to 360 ppm lithium.
A total of 113 rock samples were collected
during the three-week long reconnaissance sampling and prospecting
program; with a total of 94 rock samples collected on the
5,500-hectare Escalera Property. To ascertain the potential for
uranium enrichment in the target Paleogene – Neogene aged weathered
felsic volcanic flow rocks, field staff used portable
scintillometers to identify zones of elevated surface radioactivity
to efficiently direct rock sampling. In particular, sampling
focused on locations with elevated radioactivity associated with
large fractures and faults in the volcanic flows, which likely
reflects uranium remobilization due to extensive surface
weathering.
At Escalera, the proposed uranium mineralization
model is similar to that found at the Macusani Uranium deposit
(Plateau Energy Metals) located about 100 kilometers to the
northwest, where uranium has dissolved and precipitated from source
frothy volcanic debris flow rocks through an intricate interaction
between geomorphology, groundwater movement and evaporation.
* Note: Rock grab samples are selective by
nature and are unlikely to represent average grades on the
property.
Figure 1: 8,061 ppm (.95% U3O8) grab sample from
Escalera project, Peru is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/818d2bfe-0653-43d9-b1e6-e363a878a017
Figure 2: Azincourt projects and nearby projects
in the Puno District, Southeastern Peru is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bd3081af-5137-4723-9039-caafe14e044d
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., a director of the
Company and a qualified person in accordance with National
Instrument 43-101.
About Azincourt Energy
Corp.
Azincourt Energy is a Canadian-based resource
company specializing in the strategic acquisition, exploration, and
development of alternative energy/fuel projects, including uranium,
lithium, and other critical clean energy elements. The Company is
currently active at its joint venture East Preston uranium project
in the Athabasca Basin, Saskatchewan, Canada, and the Escalera
Group uranium-lithium projects located on the Picotani Plateau in
southeastern Peru.
ON BEHALF OF THE BOARD OF AZINCOURT
ENERGY CORP.
“Alex Klenman”Alex Klenman, President
& CEO
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.
For further information please
contact:
Alex Klenman, President & CEOTel:
604-638-8063info@azincourtenergy.com
Azincourt Energy Corp.1430 – 800 West Pender
StreetVancouver, BC V6C
2V6www.azincourtenergy.com
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