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azincourt energy corp. (TSXV: AAZ,OTC:AZURF) (OTCQB: AZURF) (FSE: A0U0) ("azincourt" or the "Company") is pleased to provide an update on its previously announced option (the "Option") to acquire a one-hundred percent interest in two mineral claim block licences located in Labrador's Central Mineral Belt in the Province of Newfoundland and Labrador, commonly known as the Sylvia Lake Uranium Project ("Sylvia Lake" or the "Project").
The Project is located approximately 100 kilometres northwest of Happy Valley-Goose Bay, Labrador, within the Central Mineral Belt, and consists of two mineral licences, #040160M and #040178M, covering approximately 6,725 hectares.
The Company previously entered into a definitive property option agreement (the "Option Agreement") with a private company (the "Optionor"), pursuant to which it was granted the option to acquire a one-hundred percent interest in the Project. The Company has now reached an agreement with the Optionor to amend the Option Agreement, such that the Company can now acquire a one-hundred percent interest in the Project by paying aggregate cash consideration of $12,000 to the underlying owner (the "Underlying Owner") of the Project and $662,000 to the Optionor, issuing 1,760,000 common shares to the Underlying Owner and incurring aggregate exploration expenditures of $250,000 on the Project, as follows:
| Timing | Common Shares | Cash | Exploration Expenditures |
| On closing / grant of the Option | 1,760,000 | $174,000 | Nil |
| Within 12 months of closing | Nil | $250,000 | $50,000 |
| Within 24 months of closing | Nil | $250,000 | $200,000 |
In connection with the amendment to the Option Agreement, the Company has revised the terms of the finders' fee payable to a third party (the "Finder") for facilitating the Option. The Company will now pay a finder's fee totaling 1,143,000 common shares (the "Finders' Fee Shares"), in the event the Option is exercised. These shares are issuable in three tranches, of which 324,000 shares are issuable upon closing of the Option, 444,000 shares are issuable upon completion of the cash payment owing on the twelve-month anniversary, and 375,000 shares are issuable upon completion of the cash payment owing on the twenty-four-month anniversary.
Each of the Company, the Optionor, the Underlying Owner and the Finder are at arms-length from each other. The TSX Venture Exchange has approved the Option, and the Company has now completed the initial cash payment and share issuances. All securities issued in connection with the Option will be subject to a four-month-and-one-day statutory hold period. In addition, upon issuance, all Finders' Fee Shares will be subject to the terms of an escrow agreement (the "Escrow Agreement") required by the policies of the TSX Venture Exchange. The Escrow Agreement places restrictions on the ability of the holder to transfer the Finders' Fee Shares without the prior approval of the TSX Venture Exchange. Notwithstanding the issue date of the Finders' Fee Shares, they will be released from the Escrow Agreement in stages, with ten percent of the Finders' Fee Shares released upon closing of the Option, and the balance in six equal tranches every six months thereafter for a period of thirty-six months.
About azincourt energy corp.
azincourt is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy and critical mineral projects, including uranium and lithium. The Company is currently active at its East Preston uranium project located in the Athabasca Basin, Saskatchewan, and is building a portfolio of uranium exploration opportunities in Labrador's Central Mineral Belt.
ON BEHALF OF THE BOARD OF azincourt energy corp.
"Mark Tommasi"
Mark Tommasi, CEO
For further information, please contact:
Mark Tommasi, CEO
Tel: (236)-229-2030
fair@azincourtenergy.myir.ai
azincourt energy corp.
Suite 1012-1030 West Georgia St.
Vancouver, BC V6E2Y3
www.azincourtenergy.com
Cautionary Statement Regarding Forward-Looking Statements
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.
Certain statements and information contained in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "targets," "potential," "proposed," "future," "continues," or similar words, expressions or variations thereof, or statements that certain actions, events or results "may," "could," "would," "might" or "will" occur, be taken, be achieved or be completed. Forward-looking statements and forward-looking information in this news release include, but are not limited to, statements regarding: receipt of TSX Venture Exchange approval or acceptance for the Option; the Company's ability to complete the acquisition of an interest in the Project; the prospectivity of the Project; and the Company's expectations regarding the geological setting, structural controls and exploration upside of the Project.
Forward-looking statements and forward-looking information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, including assumptions regarding: the Company's ability to obtain all necessary regulatory approvals and acceptances, including approval or acceptance of the TSX Venture Exchange; the Company's ability to complete the Option on the terms currently contemplated; the availability of financing, personnel, equipment and services required to carry out future exploration work; the accuracy and reliability of historical exploration results and publicly available information; the geological interpretation of the Project; the continued validity of the Company's exploration model; commodity prices; general business, market and economic conditions; and the Company's ability to comply with applicable regulatory requirements.
Forward-looking statements and forward-looking information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements and forward-looking information contained herein. Such risks and uncertainties include, without limitation: the risk that the Option may not be completed or maintained in good standing; the need for additional capital and the risk that such funds may not be available on acceptable terms or at all; the speculative nature of mineral exploration; the early-stage nature of the Company's properties; the risk that historical results may not be verified or repeated; the risk that future exploration may not identify additional mineralization; the risk that geological interpretations may change as additional information becomes available; changes in commodity prices; changes in market conditions; regulatory risks; environmental risks; the availability of equipment, personnel and contractors; permitting and access risks; and the risk that future work programs may not be completed within expected time frames or at all.
Although the Company believes that the assumptions and expectations reflected in such forward-looking statements and forward-looking information are reasonable, there can be no assurance that such statements or information will prove to be accurate. Readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this news release are made as of the date hereof, and, except as required by applicable securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314653
