Azimut Employs JV Strategy at Quebec Properties

Montreal’s Azimut Exploration (AZM-V, AZMTF-O) has signed several letters of intent for $14.6 million worth of exploration over the next five years on its northern Quebec uranium properties.

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

Toronto-based Rukwa Uranium, owned by mining executive J.C. Potvin (an Azimut director), 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 on exploration over five years. Rukwa can gain another 15% interest if it completes a bankable feasibility study.

For North Minto, Rukwa will pay Azimut $360,000 over four years and issue $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 $200,000 worth of shares.

Azimut will retain a 2% yellowcake royalty for each project.

The properties consist 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 the “Central Quebec Uranium Lineament,” which runs north-south for 350 km at widths between 10 and 30 km, and includes 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 recently signed a letter of intent for the West Minto uranium property so that Majescor Resources (MAJ-V, RSMJF-O) can acquire a 50% interest over five years, rising to 65% if it completes a bankable feasibility study.

Majescor 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 540,000 shares to earn 50%. If that happens, Azimut will retain a 2% yellowcake royalty.

West Minto 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 that spans 60 km with values of more than 100 parts per million (ppm) uranium at the 36-km zone.

Azimut signed a letter of intent for the Hudson Bay uranium property with Silver Spruce Resources (SSE-V, SSEBF-O) 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%; Azimut will retain a 2% yellowcake royalty.

Located near the Hudson Bay coastline, the property covers 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.