Symbol: AZM.TSX Venture
LONGUEUIL, QC, Nov. 21 /CNW Telbec/ - Azimut Exploration Inc. ("Azimut")
announces the signing of a letter of intent with Kativik Resources Inc.
("Kativik") regarding the Kativik property, a uranium exploration project that
comprises seven groups of claims over a surface area of 925 km2 and located in
the Central Quebec region. Kativik can acquire from Azimut an initial 50%
interest in the project by conducting a total of $5.0 million in exploration
work over a 5-year period and an additional 15% interest upon delivery of a
bankable feasibility study.
Since January 2007, Azimut has signed 12 option agreements for an
aggregate $41.9 million in minimum exploration expenditures to be conducted on
its uranium properties in Quebec. Azimut's uranium properties, comprising
20,462 claims and covering 9,707 km2, have been subject to comprehensive
exploration programs in 2007 with partner-funded budgets totalling $7.5
million. In 2008, anticipated uranium exploration programs conducted by
Azimut's partners across Quebec will total $8.2 million.
The Kativik property is characterized by strong uranium lake-bottom
sediment anomalies as well as other favourable geochemical, geophysical,
geological and structural parameters. This property has been acquired based on
a uranium potential modeling performed by Azimut at the scale of Quebec and
Labrador. Target-type is mainly large-scale intrusion-related deposits
amenable to open pit mining.
The property's seven groups of claims (Adam, East Bienville, Gamart,
Giraud, Hudson Bay North, Kogaluc and Vallard) total 1,861 claims. Kativik can
acquire a 50% interest in the property under the following conditions:
- Cash payments: $120,000 on signing, $80,000 on each of the
first, second, third and fourth anniversaries for a total of
$440,000. Kativik will also issue $100,000 of its common
shares, the number of shares being determined by Kativik's
initial public offering ("IPO") share price. An additional
$100,000 of its common shares will also be issued on each of
the first and second anniversaries. These share issuances may
be substituted by cash payments in the event Kativik does not
complete its proposed IPO.
- Minimum work expenditures of $1,000,000 during the first year
(firm commitment) and $700,000, $900,000, $1,200,000 and
$1,200,000 during the subsequent years for a total of
Upon Kativik acquiring a 50% interest, Azimut will retain a 2% Yellow Cake
Kativik will also have the option to earn an additional 15% interest by:
- Issuing $100,000 of its common shares in a one-time grant;
- Making cash payments of $50,000 per year for five years for a
total of $250,000;
- Incurring minimum work expenditures of $500,000 per year over a
5-year period; and
- Delivering a bankable feasibility study.
If Kativik elects not to exercise this additional option, Kativik will
pay Azimut $100,000 in cash as a final payment. Azimut will be the operator
during the initial 24 months.
Kativik is a Quebec City-based private mineral exploration company
managed by Louis Lessard, a well-known business executive.
This press release was prepared by geologist Jean-Marc Lulin, the
company's Qualified Person as defined by NI 43-101.
Azimut is a mineral exploration company using cutting-edge targeting
methodologies to discover major ore deposits. Azimut has 20 active option
agreements for an aggregate $65 million of partner-funded exploration
expenditures on its uranium, gold and nickel properties. The company has 16.7
million shares outstanding.
The TSX Venture Exchange (TSX Venture) does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Jean-Marc Lulin, President and CEO; Normand
Champigny, Executive Vice President; (450) 646-3015, Fax: (450) 646-3045,