Azul Drops A Non-Core La Higuera Property Option
TORONTO, ONTARIO, Dec 28, 2012 (Menafn - MARKETWIRE via COMTEX) --Azul Ventures Inc. ("Azul", or the "Company") announced that it had decided to drop the Findel option agreement(Hogar, Lolita, Santa Rosa and Santa Gertrudis mineral rights) andthe Company did not make the US165,000 option payment under theagreement which was due on December 15, 2012.
The Company regards the Findel Property as non-core and peripheral tothe main mineralized zone on the La Higuera Property on which futureexploration drilling and development will be planned. The focus ofthe Company's exploration at the La Higuera Property will be on theSan Antonio, Mina Sol and La Sin Nombre mineral rights. Optionpayments on these properties, under renegotiated terms totalingUS114,000, were made earlier in December.
In addition, as recently announced, terms were renegotiated on theAndale and Benja mineral rights agreements allowing the Company toearn a 100% interest in all of the mining concession that are subjectto those option agreements solely through the issuance of Azul commonshares, eliminating any future cash payments.
As a result of dropping the Findel option agreement, the La HigueraProperty now consists of five separate agreements over 1,119 hectares(down from six agreements over 1,230 hectares). A map of concessionsat the La Higuera Property is attached below in Figure 1.
David O'Connor, President and CEO, said, "While we would havepreferred to maintain the Findel property option, we were not willingto make the scheduled US165,000 payment on a part of the La HigueraProperty that has been assessed by the Company to be a non-core partof our future exploration plans. The mineral rights blocks within theremaining five agreements cover the core of the most prospective zoneat La Higuera, on which two open pit mines are currently exploitingcopper oxide ore and beneath which the Company believes there issubstantial high grade copper sulphide mineralization."
Amended and Restated Loan Agreement with Directors and Officers
The Company has also entered into amended and restated loanagreements with Tony Wonnacott, a director of the Company and BradBoland, the Company's Chief Financial Officer and CorporateSecretary. Under these loan agreements, a total of 930,000 has nowbeen made available and advanced to the Company. In addition, theCompany entered into loan agreements with David O'Connor, President,CEO and a director of the Company and Francisco Schubert, theCompany's Chilean Country Manager, under which US120,000 has beenmade available and advanced to the Company. The loans accrue interestat a rate of 10% per annum and is payable at the end of the term ofthe loan on January 15, 2013. The loans are unsecured and there areno conversion provisions.
About Azul Ventures Inc.
Azul Ventures Inc. is a mineral exploration company with the rights,through its wholly owned subsidiary Minera Azul Ventures Limitada, toacquire a 100% interest in two prospective copper-iron properties inLa Higuera, Chile: the La Higuera Property and the Caballo BlancoProperty. The properties are located approximately 600 km north ofSantiago in a prolific I.O.C.G. belt surrounded by excellentinfrastructure in a mining friendly jurisdiction.
The La Higuera Property was assembled as a result of the first-timeconsolidation of mining rights and covers a historic copper miningdistrict with mining activity dating back to at least the late 18thcentury; however, there had been no known modern explorationconducted on the property. Since the consolidation of the miningrights in June 2011, Azul completed a rock sampling program,completed geophysical work which generated intense magnetic andchargeability anomalies coincident with existing copper workings,finalized a 4,088 m drill program and an underground mapping andsampling program.
The Caballo Blanco Property, which begins approximately 1 kmsouthwest of the La Higuera Property, has historical copper workingsand a total of 15 broad spaced reconnaissance holes were completed atCaballo Blanco by previous option holders. The Company has receivedand logged the core from these historical drill holes.
Information set forth in this news release may involveforward-looking statements under applicable securities laws.Forward-looking statements are statements that relate to future, notpast, events. In this context, forward-looking statements oftenaddress expected future business and financial performance, and oftencontain words such as "anticipate", "believe", "plan", "estimate","expect", and "intend", statements that an action or event "may","might", "could", "should", or "will" be taken or occur, or othersimilar expressions. All statements, other than statements ofhistorical fact, are forward-looking statements. By their nature,forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the Company's actualresults, performance or achievements, or other future events, to bematerially different from any future results, performance orachievements expressed or implied by such forward-looking statements.Such factors include, among others, the following risks: the need foradditional financing; operational risks associated with mineralexploration; market conditions; fluctuations in commodity prices;title matters; environmental liability claims and insurance; relianceon key personnel; the potential for conflicts of interest amongcertain officers, directors or promoters with certain other projects;the absence of dividends; competition; dilution; the volatility ofour common share price and volume and the additional risks identifiedin the "Risk Factors" section of the Company's Filing Statement orother reports and filings with the TSX Venture Exchange andapplicable Canadian securities regulations. Forward-lookingstatements are made based on management's beliefs, estimates andopinions on the date that statements are made and Azul undertakes noobligation to update forward-looking statements if these beliefs,estimates and opinions or other circumstances should change, exceptas required by applicable securities laws. Investors are cautionedagainst attributing undue certainty to forward-looking statements.
To view "FIGURE 1: MAP OF CONCESSIONS AT LA HIGUERA," please visitthe following link:http://media3.marketwire.com/docs/AZL2812_figure1.pdf.
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.
Azul Ventures Inc.
President and Chief Executive Officer
SOURCE: Azul Ventures Inc.
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