TORONTO, ONTARIO -- (Marketwire) -- 01/23/13 -- Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE: AZL) announced that it has signed amended agreements with the Caballo Blanco mineral rights owner and the Benja mineral rights owner. In addition, the Company has decided to drop the La Sin Nombre mineral concessions. The Benja and the La Sin Nombre mineral rights are part of the La Higuera Property.
Caballo Blanco Mineral Rights
Under the previous Caballo Blanco option agreement, the Company was required to make four remaining payments totaling US$925,000 and issue 400,000 common shares of Azul. The next payment of US$125,000 was due on or before January 1, 2013. The amended agreement reduces the total remaining payments to US$440,000, with an immediate payment of US$40,000. The revised cash and share payment schedule is outlined below (US$):
Revised PreviousDate Cash Shares Cash SharesJanuary 1, 2013 $ - - $ 125,000 -January 21, 2013 40,000 400,000 - -July 1, 2013 - - 100,000 150,000December 15, 2013 50,000 250,000 - -July 1, 2014 - - 200,000 -December 15, 2014 100,000 400,000 - -January 1, 2015 - - - 250,000July 1, 2015 - - 500,000 -December 15, 2015 250,000 - - - ---------- ---------- ---------- --------Total $ 440,000 1,050,000 $ 925,000 400,000
In addition, the Company has agreed to grant to the Caballo Blanco property owner a 1% NSR on the Caballo Blanco exploitation claims. The Company may acquire the NSR at any time for US$500,000.
A map of the Caballo Blanco concessions is attached below in Figure 1.
Benja Mineral Rights (Canas Option Agreement)
The Company has agreed to increase the number of common shares payable under the Canas option agreement (Benja mineral rights) to 500,000 common shares; up from the 250,000 common shares, as previously announced in the Company's December 10, 2012 press release. Under the prior option agreement on the Benja properties, the Company was required to make four remaining payments totaling US$460,000. The amended agreement eliminates all of the remaining cash payments in exchange for the immediate issuance of 500,000 common shares. Upon the issuance of the 500,000 common shares, all conditions for Azul to have earned a 100% interest in the mining concessions that are subject to the Benja option agreement shall be fulfilled. The Benja option agreement concessions cover approximately 80 of the 1,230 hectare La Higuera Property.
The amended agreement relates to the exploitation concessions referred to "Canas" in Figure 2 below.
La Sin Nombre Mineral Rights (Alcayaga Option Agreement)
The Company has decided to drop the option agreement on the La Sin Nombre mineral rights (Alcayaga option agreement in Figure 2 below) which made up part of the La Higuera Property and the Company did not make the US$44,000 option payment under the agreement which was due on December 15, 2012. The focus of the Company's exploration at the La Higuera Property will be on the San Antonio (Molina) and Mina Sol (Gonzalez) mineral rights on which future exploration drilling and development will be planned. Option payments on the San Antonio and Mina Sol properties, under renegotiated terms totaling US$70,000, were made in December 2012.