Centerra targets 70 % of Azimut projects with $16 million earn-in

Centerra Gold can earn as much as 70% of Azimut Exploration’s Corvet and Kaanaayaa properties under an option agreement announced Oct. 13 in an Azimut press release.

The deal could bring $16 million of exploration spending over 10 years, compared with up to $850,000 in cash payments, shifting early-stage funding risk from Azimut to Centerra.

Azimut said the two properties cover 556.3 square kilometres across 1,082 claims in Quebec’s Eeyou Istchee James Bay region. The company said the projects were selected for gold-copper potential after lake-sediment anomalies and regional predictive modelling.

The first phase allows Centerra, through a wholly owned subsidiary, to earn 51% over four years by funding $6 million of exploration and paying $250,000 in cash. The initial $1.25 million of spending is described by Azimut as a firm commitment.

A second phase would let Centerra increase its stake by 19 percentage points, to 70%, over six years. To do that, it must deliver a Preliminary Economic Assessment, an early economic study of a mineral project, with a minimum mineral resource estimate of 1 million gold-equivalent ounces, fund another $10 million of exploration and make as much as $600,000 in cash payments.

The agreement fits Azimut’s stated model of using partners to advance greenfield exploration while reserving its own spending for more developed assets. Azimut said an initial till-sampling programme, which tests glacial sediments for mineral clues, is scheduled to begin in mid-October, followed by field checks next spring.

The Corvet property comprises 623 claims over 320.4 square kilometres near the Trans-Taiga Road. Azimut said past fieldwork returned selected grab samples of as much as 7.86% copper and 1.83 grams per tonne gold.

Kaanaayaa covers 459 claims over 235.9 square kilometres east of Corvet. Azimut said selected grab samples from the Moly prospect, found in 2024, returned values of as much as 7.39 grams per tonne gold, 3.98 grams per tonne silver, 0.95% molybdenum, 0.33% bismuth and 0.14% copper.

Azimut cautioned that grab samples are selective and may not reflect average grades or the true character of mineralisation. The properties are also described by the company as largely underexplored, meaning the disclosed samples do not establish an economic deposit.

Centerra already controls or directs 13,973,647 Azimut common shares, equal to about 12.67% of Azimut’s issued and outstanding shares, according to the press release. Azimut said Centerra is therefore a related party under Regulation 61-101, and that the transaction will not change Centerra’s equity ownership in Azimut.

Azimut said its board approved the transaction and that no director abstained or opposed it. The company said it is relying on exemptions from formal valuation and minority-approval requirements, after determining that the relevant fair-market values do not exceed 25% of Azimut’s market capitalization under the regulation.

If Centerra completes only the first option and does not proceed with the second, its interest would be adjusted to 49%, while Azimut would hold 51%. If either joint-venture partner is diluted below 10%, its stake would convert into a 2% net smelter return royalty, a payment based on revenue from metal sales after processing and refining costs, with 0.5% repurchasable for $2 million, adjusted for inflation.

The agreement remains subject to customary closing conditions, including approval by the TSX Venture Exchange. Dr. Jean-Marc Lulin, Azimut’s president and chief executive, prepared and approved the scientific and technical disclosure as the company’s qualified person under National Instrument 43-101.

Field programme dates

• Mid-October: Azimut said an initial systematic till-sampling programme is scheduled to start on both the Corvet and Kaanaayaa properties.

• Next spring: Azimut said the first sampling programme will lead to a field-validation phase.

• Pending closing: Azimut said the agreement is subject to customary closing conditions, including approval from the TSX Venture Exchange.

Source: Press release, Azimut Exploration via GlobeNewswire, Oct. 13, 2026