Azimut partnerships lead to uranium exploration

Montreals Azimut Exploration (AZM-V) has recently signed letters of intent with three companies worth $14.6 million in exploration over the next five years on its northern Quebec uranium properties.

Part of Azimuts strategy as an explorer is to form strategic partnerships at the early stage of exploration.

Toronto-based Rukwa Uranium has signed two letters with Azimut to earn a 50% interest in the North Minto and South Minto properties, located midway between Ungava Bay and Hudson Bay, by spending $8.2 million in exploration work over five years. Rukwa can gain an additional 15% interest if it completes a bankable feasibility study.

For North Minto, Rukwa will pay Azimut a total of $360,000 over four years and will also issue a total of $200,000 worth of shares, based on the share price of its upcoming initial public offering.

Similarly, Rukwa will pay Azimut $340,000 over four years for the South Minto property and issue a total of $200,000 worth of shares.

As well, Azimut will have a 2% yellow cake royalty for each project.

The properties comprise of 3,121 claims with a surface area of 1,441 sq. km and a cumulative strike length of 120 km. They cover a regional-scale uranium lake-bottom sediment anomaly dubbed by Azimut as the Central Quebec Uranium Lineament, which runs north-south for 350 km at widths between 10 and 30 km, and include several strong anomalies adjacent to the main trend.

Azimut has six properties in total along the lineament; the North, South, East and West Minto properties, and the South and East Bienville properties, totalling 7,139 claims over 3,339 sq. km. Azimut is still waiting for the Ministry of Natural Resources and Wildlife (MNRQW) to approve 745 recently staked claims for the Minto North property.

Azimut has also recently signed a letter of intent for the West Minto Uranium property so that Majescor (MAJ-V) can acquire a 50% interest over five years, rising to 65% if it completes a bankable feasibility study.

Majescor also has a similar agreement with Azimut for the South Rae uranium property, on the east side of the Ungava Bay region, 130 km southeast of Kuujjuaq.

Under the proposed agreement, Majescor must spend $3.8 million, pay Azimut $300,000 over four years and issue a total of 540,000 shares in order to earn 50%. If that happens, Azimut will retain a 2% yellow cake royalty.

The West Minto property is 110 km east of the Hudson Bay Coastline in Northern Quebec and 150 km east-southeast from the village and airport of Inukjuak. The property consists of 918 claims over 416 sq. km, including 258 recently staked claims that have not yet been confirmed by the MNRQW.

West Minto is home to a lake-bottom sediment uranium anomaly over a distance of 60 km with values of more than 100 parts per million uranium at the 36-km zone.

Azimut signed a letter of intent for the Hudson Bay uranium property with Silver Spruce Resources (SSE-V) for a 50% interest over five years, which increases to 65% if Silver Spruce completes a bankable feasibility study in that timeframe.

Silver Spruce must pay Azimut $200,000 over four years, issue a total of 300,000 shares and spend $2.6 million on exploration to earn 50%, and Azimut will retain a 2% yellow cake royalty.

Located near the Hudson Bay coastline, the property covers an area of 253 sq. km and consists of 537 claims, including eight new claims yet to be confirmed by the MNRWQ. The property includes a lake bottom sediment anomaly with a peak value of 750 ppm uranium.