TORONTO, ONTARIO--(Marketwire - Nov. 9, 2012) - Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE:AZL) is pleased to announce that it has entered into an agreement to amend the purchase option agreement with Inversiones y Mineria Andale Limitada ("Andale"), one of the six option agreements the Company has on the La Higuera Property. The amended agreement eliminates the remaining cash payments totaling US$575,000 in exchange for the issuance of an additional 200,000 common shares and the accelerated issuance of the remaining 500,000 common shares provided in the original option agreement.
Under the original agreement, the Company was required to make 3 remaining payments totaling US$575,000 between December 15, 2012 and July 4, 2014 and issue a total of 500,000 common shares of Azul, in two equal tranches, on or before July 1, 2013 and July 1 2014. The amended agreement instead calls for the immediate issuance of 700,000 Azul common shares, following TSX Venture Exchange (the "Exchange") approval. Upon the issuance of the 700,000 common shares to Andale, all conditions for Azul to have earned a 100% interest in all of the mining concessions that are subject to the Andale option agreement shall have been fulfilled. The Andale option agreement concessions cover approximately 1,000 of the 1,230 hectare La Higuera Property.
The amendment remains subject to all regulatory approval, including the approval of the Exchange.
The amended agreement, which was signed before a notary on Tuesday, November 6, 2012, has accelerated the purchase of the mineral titles by Azul that were subject to the Andale option agreement. The amended option agreement between the Company and Andale is with respect to the exploration concessions referred to as "Withney", "Gloria" and "Avril", with respect to the exploitation concessions referred to as "Caballo Cinco 21 al 31", "Caballo Cinco 41 al 49", "Blanco Seis 21" and "Blanco Seis 41 al 55" and with respect to mining exploitation concession applications referred to as "Black 1 al 100", "Blanco 1 al 10", "Blanco 21", "Caballo Cinco, 1 al 17" and "Blanco Seis, 1 al 5". A map of the La Higuera property, with the Andale concessions highlighted, is provided below under Figure 1.
David O'Connor, President and CEO, said, "The Company is pleased to have been able to work with Andale to amend the terms of the option agreement. We believe the revised terms demonstrate that Andale shares some of the Company's enthusiasm surrounding the potential of its La Higuera and Caballo Blanco properties, despite the difficult financing environment currently being faced by the sector."
About Azul Ventures Inc.
Azul Ventures Inc. is a mineral exploration company with the rights, through its wholly owned subsidiary Minera Azul Ventures Limitada, to acquire a 100% interest in two prospective copper-iron properties in La Higuera, Chile: the La Higuera Property and the Caballo Blanco Property. The properties are located approximately 600 km north of Santiago in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.
The La Higuera Property was assembled as a result of the first-time consolidation of mining rights and covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there has been no known modern exploration conducted on the property. Since the consolidation of the mining rights in June of 2011, Azul has initiated a rock sampling program, completed geophysical work which has generated intense magnetic and chargeability anomalies coincident with existing copper workings, finalized a 4,088 m drill program and an underground mapping and sampling program.
The Caballo Blanco Property, which begins approximately 1 km southwest of the La Higuera Property, has historical copper workings and a total of 15 broad spaced reconnaissance holes were completed at Caballo Blanco by previous option holders. The Company has received and logged the core from these historical drill holes.
The Company has not independently verified the historical drilling results on Caballo Blanco, and thus the drilling results should not be relied upon by shareholders, potential investors or any other individual or company. The Company is only using this historical information to assist with the planning and prioritization of exploration targets.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Azul undertakes no obligation to update forward- looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Azulfigure1.pdf.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.