Azure Minerals (ASX:AZS) has shown the market how it is done, raising a fast $5.2 million from key investors to fast track work at its recently announced large, high grade silver discovery in northern Mexico.
The placement was done at $0.036 a share. This will allow Azure to up the ante at its Mesa de Plata silver discovery at the Alacrán Project where the first two diamond core holes at the project hit very wide zones of silver with grades of up to 1,044 g/t silver from just two metres depth.
In fact, an 18.0 metre at 655g/t gold intercept included 10.5 metres at 1,044g/t silver while the other hole returned 18.7 metres at 530g/t silver from 29 metres.
Diamond drilling results were similar to those achieved in the initial discovery RC drill holes so Azure is clearly onto something and will now set sail to announce a maiden resource at Mesa de Plata and then straight into a feasibility study.
Given Mesa de Plata's thickness and horizontal layer of mineralisation is perched on top of a hill with easy access and logistics, an open pit mining operation ought to be relatively low cost and highly profitable.
The capital raised today will allow Azure to go all out in the next 12 months at Mesa de Plata with an intensive work program including a maiden resource estimate, metallurgical work and further development studies.
Azure also has the promising Promontorio copper project in Mexico, with a JORC resource of 2.9 million tonnes at 2.5% CuEq which is part of an Azure and Rio Tinto (ASX:RIO) joint venture.
Earlier, this saw Azure managing director Tony Rovira negotiate a deal with Rio whereby it sole funds all exploration at Promontorio for Azure while also paying Azure a 10% project management fee to boot. Rio can earn an 80% project interest by spending US$45 million.
With today's $5.2 million placement, there will be a bunch more shares issued but given the four-fold leap in share price over the past months, there would not be many investors complaining.
Add in, as part of this that well regarded Sprott Inc of Canada subscribed for 40 million shares at $0.036 each for $1.44 million as well as Mark Creasy investing a further $1 million to move to 9.8% and it is a fine time to be an Azure shareholder.
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