Azure Minerals Ltd (ASX:AZS) has wrapped up the sale of its Mexican precious and base metals projects to Bendito Resources Inc for a combination of cash and shares valued at A$20 million.
The company announced its intention to sell on May 30 and garnered shareholder approval on June 29, setting out the terms and conditions of the sale in that first announcement.
Shares and cash
Azure will receive A$10 million in cash and A$10 million worth of fully paid ordinary shares in Bendito in two tranches over an 18-month period.
When it closed the deal, Azure received an immediate cash payment of A$4 million and was furnished with 11.2 million Bendito shares, roughly 20% of the issued capital of Bendito, with a cash value of A$4 million.
A second tranche of A$6 million in cash and A$6 million worth of Bendito shares is payable to Azure within 18 months of closing the deal.
Azure disclosed that, subsequent to the May announcement and shareholder approval in June, the parties agreed to a variation to the structure of the consideration payable to Azure, which had the effect of bringing forward A$2 million of the Bendito share component and deferring A$2 million of the cash component to be paid in the second tranche, within 18 months of closing.
There was no difference in the total consideration changing hands.
"Significant value for both parties"
Azure managing director Tony Rovira said: “I thank all those involved in completing this transaction, which I believe will create significant value for both parties.
“The injection of these extra funds will enable Azure to continue advancing our Andover Nickel-Copper-Cobalt Project through exploration and growing the resource base while progressing the development studies.
“Meanwhile, with Bendito dedicated to growing the Mexican projects and supported by funding from the North American capital markets, our significant equity interest in Bendito provides us with good exposure to the upside.”