Creasy, SQM-backed $130m raise to accelerate exploration and lithium resource drillout at Andover

• Very thick and high-grade lithium mineralisation at true width has been confirmed at Andover
• Azure to raise $130m for more exploration work at Andover
• Lithium-bearing pegmatites now confirmed across a 9km x 5km target area
• Drill rigs to continue spinning at Target Area 1 and 2
• Maiden MRE pegged for Q1 2024

One of the hottest stocks of 2023 Azure Minerals will raise $130m for drilling, exploration and early project studies as it advances toward a maiden resource at Andover in Q1, 2024.

Backed by Mark Creasy and with SQM also holding a 19.8% stake, Azure Minerals’ (ASX:AZS) is up ~1100% year-to-date on ongoing success at the Andover lithium project

Exceptionally thick drill results with intersections of up to 2.13% Li2O culminated in a monster exploration target of 100-240Mt and an informal (and rebuffed) takeover offer from the aforementioned SQM, one of the biggest lithium miners in the world.

Off to the races with $130m to prove up a maiden resource

A two-tranche $120m institutional placement and a $10m share purchase plan at $2.40/sh will give Azure $137m to play with as it accelerates the tier one project through some important milestones.

Tranche 1 will raise ~$100m through strong support from major shareholders Creasy Group (13.37%) and SQM which aims to top up its stake to 19.99% after settlement of Tranche 2 that will raise a further $20m.

AZS plans to raise another $10m through a share purchase plan at the same price as the placement.

What’s next?

Azure is targeting a maiden MRE for Q1 next year, with heritage and environmental studies and a scoping study expected to be finalised next year too.

All the while, the drill bits will be spinning throughout to complete an eye-whopping 100km drilling program at Andover.

Azure says “significant confidence has been realised” off these latest assay results from Target Area 1, and has commenced exploration drilling in Target Area 2 – which hosts the AP0015, AP0016 and AP0017 prospects.

“Azure is delighted to announce the underwritten institutional Placement, which provides a strong capital base to accelerate exploration and resource drilling at Andover as we advance towards announcing a maiden lithium Mineral Resources targeted in Q1 2024,” AZS MD Tony Rovira says.

“Additionally, the placement provides sufficient funding to progress various studies at Andover, including a scoping study which is expected be finalised in 2024.

The placement provides a strong endorsement for Andover as one of the best lithium exploration projects globally, with abundant outcropping mineralised pegmatites and substantial widths of high-grade mineralisation intersected from limited drilling to date.

“The company remains incredibly optimistic about the potential scale of Andover and looks forward to realising the full potential of this exciting discovery.”

This article was developed in collaboration with Azure Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Creasy, SQM-backed $130m raise to accelerate exploration and lithium resource drillout at Andover appeared first on Stockhead.

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