K Silver Aztec’s M largest shareholder
- retaining an NSR provides Kootenay Silver the upside in the project, and allows Kootenay to monetize on one of its many assets.”
July 26, 2022 - Aztec Minerals Corp. (AZT: TSX-V, OTCQB: AZZTF) (“Aztec”) and Kootenay Silver Inc. (TSXV: KTN) (“Kootenay”) are pleased to announce that, on July 22nd 2022, they entered into a Purchase and Sale Agreement (the “Agreement”) whereby Aztec will indirectly acquire Kootenay’s 35% interest in the joint venture company (“JV Corp.”) that holds the Cervantes porphyry gold-copper project in Sonora, Mexico (the “Transaction”). As consideration for the acquisition, Aztec will issue to Kootenay 10,000,000 common shares in the capital of Aztec, at a price of C$0.25 per share, and Kootenay will retain a 0.5% Net Smelter Return Royalty (“NSR”). Upon completion of the Transaction, JV Corp. will be a wholly owned subsidiary of Aztec.
The Transaction is subject to standard closing conditions including final acceptance of the Transaction by the TSX Venture Exchange. The closing of the Transaction is anticipated to occur on or about August 5, 2022.
Simon Dyakowski, CEO of Aztec, commented: “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.”
James McDonald, CEO of Kootenay, commented: “We believe this agreement is a win-win deal and that the best way to move Cervantes forward is with consolidated ownership of the project. Becoming Aztec’s largest shareholder and retaining an NSR provides Kootenay Silver the upside in the project, and allows Kootenay to monetize on one of its many assets.”
About Aztec Minerals Corp. – Aztec is a mineral exploration company focused on the discovery of large polymetallic mineral deposits in the Americas. Our core asset is the prospective Cervantes porphyry gold-copper property in Sonora, Mexico. Aztec also has control of the historic, district-scale Tombstone properties host both bulk tonnage epithermal gold-silver as well as CRD silver-lead-zinc mineralization in Cochise County, Arizona. Aztec’s shares trade on the TSX-V stock exchange (symbol AZT) and on the OTCQB (symbol AZZTF).
About Kootenay Silver Inc. – Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.