AZINCOURT ENERGY CORP. (“Azincourt” or the
“Company”)
(TSX.V: AAZ, OTC: AZURF), is pleased to
announce that it has entered into a definitive property option
agreement with ValOre Metals Corp. (the
“
Optionor”) (TSX.V: VO), an arms-length party,
pursuant to which the Company has been granted the option (the
“
Option”) to acquire up to a seventy-five percent
interest in the Hatchet Lake Uranium Project (the
“
Project”). The Project consists of a series of
six mineral claims located in the Province of Saskatchewan.
Hatchet Lake is 13,711-hectare uranium
exploration project adjacent to the northeastern margin of the
Athabasca Basin, situated along the underexplored northeast
extension of the Western Wollaston Domain (WWD) within the
Wollaston-Mudjatik Transition Zone (WMTZ). This highly prospective
structural corridor hosts the majority of known high-grade uranium
deposits and all of Canada’s operating uranium mines.
Located 39km along-trend from the Roughrider and
Midwest uranium deposits and within 30km of Cameco’s Eagle Point
uranium mine, Hatchet Lake features multiple, shallow,
unconformity-related basement uranium targets based on previous
work by both Hathor Exploration Ltd. and Rio Tinto. Previous work
includes geophysics, boulder, soil, lake sediment and
bio-geochemical sampling. The project contains substantial historic
exploration datasets with identified uranium anomalism and showings
to help guide exploration programs.
Two high-priority zones on the property have
been identified; the Upper Manson and SW Scrimes zones. Previous
work includes 140 line-km of ground geophysics and a 2007 VTEM
survey that defined 30 conductive targets with a combined 53
line-km of strike length. Total sampling includes 1583 soil, 2404
bio-geochemical, and 24 radioactive rock samples returning assay
results up to 2.43% U3O8 (ValOre Metals Presentation). Geochemical
anomalies highlight a variety of uraniferous host rocks that are
coincident with the conductive geophysical targets. Uraniferous
rocks are typically referred to as containing uranium significantly
above normal expected values.
“Hatchet Lake increases our exposure in the
world’s premier destination for uranium deposition,” said president
and CEO, Alex Klenman. “This area in the NE Athabasca Basin is
ground zero for uranium deposits and producing mines. Yet the
ground just outside the basin boundary remains underexplored.
Hatchet Lake features multiple exploration criteria that speaks to
substantial discovery potential. This opportunity, along with our
majority controlled East Preston project, provides Azincourt
shareholders with exposure to two district scale, top-tier uranium
exploration projects, in the world’s preeminent location for
uranium discovery,” continued Mr. Klenman.
“We are excited to add the Hatchet Lake Project
to our portfolio” said Vice President, Exploration, Trevor Perkins.
“The eastern side of the Athabasca Basin has historically been the
hot spot for high grade uranium, and along with our East Preston
Project, we now have excellent land positions in the long ignored
and underexplored extensions of the two best trends in the basin
and arguably the world for the discovery of high-grade unconformity
related uranium deposits,” continued Mr. Perkins.
Image 1: Location of Hatchet Lake project, NE
Athabasca Basin, Saskatchewan,
Canadahttps://www.globenewswire.com/NewsRoom/AttachmentNg/0725ebec-43e0-4cce-9b8c-0b3d9f749b70
Image 2: Hatchet Lake uranium project, in
relation to nearby uranium deposits and showings, NE Athabasca
Basin, Saskatchewan,
Canadahttps://www.globenewswire.com/NewsRoom/AttachmentNg/9e491b0f-ecd0-434d-9f0e-3d6e516d62d9
Terms and Considerations
Pursuant to the terms of the Option, the Company
can acquire a seventy-five percent interest in the Project by
completing a series of cash payments and share issuances to the
Optionor, and incurring certain expenditures on the Project, as
follows:
|
Cash Payments |
Common Shares |
Exploration Expenditures |
Upon the grant of the Option |
$100,000 |
$250,000 |
Not Applicable |
Within 12 Months |
$250,000 |
$500,000 |
$1,000,000 |
Within 24 Months |
$250,000 |
$500,000 |
$1,000,000 |
Within 36 Months |
$250,000 |
$500,000 |
$2,000,000 |
All common shares issuable to the Optionor will
be calculated and issued at a deemed price equivalent to the
volume-weighted average closing price of the common shares of the
Company on the TSX Venture Exchange in the twenty trading days
immediately prior to issuance, subject to a minimum price of
$0.05.
Following completion of these requirements the
Company will hold a seventy-five percent interest in the Project.
In the event the Company does not complete the final cash payment
($250,000) and share issuance ($250,000), and incur the final
expenditures ($2,000,000), the Company will hold a fifty percent
interest in the Project.
All securities issued in connection with the
Option will be subject to a four-month-and-one-day statutory hold
period. The Option remains subject to the approval of the TSX
Venture Exchange. In connection with the grant of the Option, a
cash fee of $105,000 is owing by the Company to an arms’-length
party who assisted with the introduction of transaction.
Azincourt Closes Additional Private
Placement
The Company is also pleased to announce that it
has completed an additional non-brokered private placement. In
connection with closing, the Company has issued 14,333,334
flow-through units (each, an “FT Unit”), and
7,034,570 non flow-through units (each, an “FT
Unit”), for gross proceeds of $1,567,420. This placement
included participation by an institutional investor in the amount
of 13,333,333 FT units. Each NFT Unit was offered at a price of
$0.07 and each FT Unit was offered at a price of $0.075. Each NFT
Unit and FT Unit consists of one common share and one share
purchase warrant entitling the holder to acquire an additional
common share of the Company at a price of $0.10 until November 10,
2024.
The gross proceeds from the issuance of the FT
Units will be used for Canadian exploration expenses (within the
meaning of the Income Tax Act (Canada)), which will be renounced
with an effective date of no later than December 31, 2021, to the
purchasers of the FT Units in an aggregate amount not less than the
gross proceeds raised from the issue of the FT Units. If the
qualifying expenditures are reduced by the Canada Revenue Agency,
the Company will indemnify each subscriber of FT Units for any
additional taxes payable by such subscriber as a result of the
Company's failure to renounce the qualifying expenditures.
All securities issuable in connection with the
placement are subject to a statutory hold period, in accordance
with applicable securities laws, until March 11, 2022. In
connection with closing of the placement, the Company paid finders’
fees totaling $70,000 and issued a total of 933,333 finders’
warrants. Each finders’ warrant is exercisable into one common
share of the Company at a price of $0.075 until November 10,
2024.
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 C. Trevor Perkins, P.Geo., Vice President,
Exploration of Azincourt Energy, and a Qualified Person as defined
by 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 majority controlled joint venture East
Preston uranium project in the Athabasca Basin, Saskatchewan,
Canada, and the Escalera Group uranium-lithium project 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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