Mr. Morgan Poliquin reports
AZUCAR CLOSES NEWCREST TOP-UP SUBSCRIPTION
Newcrest Canada Holdings Inc. has exercised its top-up rights pursuant to the May 18, 2018, investor rights agreement with Azucar Minerals Ltd.
On the exercise of its top-up rights, Newcrest has acquired an additional 222,834 common shares of Azucar at a price of 55.81 cents per share, for a total of $124,364, thereby maintaining its ownership in the company at 19.9 per cent. The shares issued pursuant to the subscription are subject to a hold period expiring Feb. 18, 2019.
As Newcrest held (prior to the exercise of its top-up rights) 19.7 per cent of the voting rights attached to all of Azucar's outstanding voting securities, the subscription is considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The subscription is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the common shares issued to, nor the consideration paid by, Newcrest exceeds 25 per cent of the company's market capitalization.
About Azucar Minerals Ltd.
Azucar is an exploration company with a mandate to thoroughly explore the El Cobre project in Veracruz, Mexico, an approximately 7,300-hectare property, which covers multiple gold-rich porphyry targets, as demonstrated by recent drilling.Azucar is permitted and financed for active drill campaigns in 2018 and 2019.Azucar holds a 100-per-cent interest in the El Cobre project, subject to net smelter return (NSR) royalty interests, assuming production from the property exceeds 10,001 tonnes per day of ore, totalling 2.25 per cent, which can be reduced to 2.0 per cent through the payment of $3.0-million (U.S.).
© 2018 Canjex Publishing Ltd. All rights reserved.