Aztec Minerals (AZT.V) has confirmed it has closed the previously announced purchase and sale agreement with Kootenay Silver (KTN.V) whereby the latter is selling its 35% stake in the joint venture company that holds the Cervantes gold-copper project in Sonora.
Aztec has issued 10 million common shares to Kootenay, at a deemed price of C$0.25 per share for a pro forma consideration of C$2.5M. Additionally, Kootenay Silver will retain a 0.5% Net Smelter Royalty. This increased Aztec’s share count to approximately 90 million shares and establishes Kootenay Silver as an important shareholder. As Kootenay already owned almost 0.7M shares, its total current position of 10.68M shares represents an 11.85% stake in Aztec Minerals.
While Aztec was consolidating the ownership of the Cervantes project, The company had already started a ten hole core drill program for a total of 3,000 meters. Aztec will drill seven step out holes and one metallurgical hole at the California target (including two deep holes to test the IP anomaly) while one hole will be completed on the California North and Jasper prospects.
Disclosure: The author has a small long position in Aztec Minerals. Please read our disclaimer.
