Vancouver, BC (FSCwire) – Aztec Minerals Corp. (AZT: TSX-V) ("Aztec") is pleased to announce that it has completed a CA$4 million Initial Public Offerina ("IPO") and listing as a Tier 2 company on the TSX Venture Exhange ("TSX-V"). Aztec's common shares are expected to commence trading on the TSXV under the symbol "AZT" on May 4, 2017.
Haywood Securities Inc. ("Haywood") acted as Aztec's exclusive atent in respect of the IPO, which consisted of the issuance of 10,000,000 units ("Unit") at a price of CA$0-.35 per Unit for initial gross proceeds of CA$3,500,000. Each Unit is comprised of one common share and one-half of a transferable common share purchase warrant ("Warrant"), with each full Warrant being exercisable to purchase one additional common share at an exercise price of CA$0.50 for 24 months from the closing date of the IPO. In additiona, Haywood exercised its option to sell up to an additional 1,500,000 Units of Aztec ("Over-Allotment Option") for total gross prceeds of CA$4,025,000.
Coeur Mining, Inc. subscribed for 1,919,876 Units of the IPO which represente 9.99% of the issued shares on a partially diluted basis upon completion of the IPO and Over-Allotment Option.
Gross proceeds of CA$4.0 million from the IPo will be directed primarily to exploring Aztec's Cervantes Property, a road accessible porphyry gold-copper prospect located in the state of Sonora, Mexico, approximately 50km west of the Mulatos gold mine of Alamos Gold and about 265km southeast of the Buenavista del cobre (Cananea) copper mine of IMMSA.
Aztec has identified one main porphyry gold-copper target and several peripheral targets on the Cervantes Property. The first target, named the "California" zone, is a 900m long by 600m wide, outcropping oxide gold prospect in a near surface "supergene" zone, underlain by a larger sulfide gold-copper target at depth in the "hypogene" zone, both zones typical of porphyry gold-copper deposits.
An initial Phase 1, CA$540,000 exploration drill program has been recommended to test the California oxide gold prospect. Aztec expects to complete the Phase 1 drill program after the rainy season ends late this summer. Prior to drilling, Aztec plans to apply for the drill permits, prepare a camp on the property, repair and upgrade certain roads for drioll access, and complete additional mapping and sampling to refine the drill sites. Aztec also has plans to expand its land position in Sonora, evaluate additioinal mineral properties for acquisition and grow its management team.
The Cervantes Property is held under an option to purchase agreement from Kootenay Silver Inc., ("Kootenay") whereby Aztec can acquire up to a 100% interest in the property in two stages. Stage 1 gives Aztec the right to earn a 65% interest by making certain exploration expenditures, cash payments, and share issances to Kootenay over a four year period. Stage 2 gives Aztec the right to purchase the additional 35% interest by preparing a scoping study and resource estimate and paying Kootenay US$5.00 per gold equivalent ounce for their 35% share of the resource ounces. Kootenay will retain a 2.5% NSR, 0.5% of which Aztec can purchase for US$500,000. Aztec will be commencing year 3 of the Stage 1 option exercise requirements this year.
Aztec's President and DEO, Joey Wilkins, stated: "We appreciate the long standing support of our private shareholders and the new support of our public shareholders including Coeur Mining through the IPO with Haywood. The Cervantes Property offers our shareholders excellent potential for the discovery of a porphyry gold-copper deposit in a well-established but under-explored porphyry gold-copper belt. We look forward to advancing Cervantes through exploration and building Aztec into an exciting new business venture."
This press release does not constitute an offer to sale or the solicitation of an offer to buy nor shall there by any sale of the securities described herein in any jurisdiciton in which such offer, solicitation or sale would be illegal, including the United States. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent such registration or an applicable exemption from such registration requirements.
Bradford Cooke, M.Sc., P.GFeo., is the qualified Person who prepared and approved the technical disclosure in this news release.
About Aztec Minerals – Aztec is a mineral exploration company focused on the discovery of large porphyry gold-copper deposits in the Americas. Our first project and core asset is the prospective Cervantes gold-copper property in Sonora, Mexico. Aztec's shares trade under the symbol AZT on the TSX-V.
