Azure Minerals Has Gained Strong Recognition of Its Andover Lithium Potential, as SQM Invests A$20 Million in the Project

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Global lithium leader Sociedad Química y Minera de Chile S.A. (SQM) has demonstrated its commitment to the potential of Azure Minerals Ltd’s (ASX: AZS) Andover Project in Western Australia with a $20 million cornerstone investment.

SQM Australia Pty Ltd’s investment in Azure, giving them a 19.99% stake, demonstrates the extraordinary potential of Andover to become an international leader in lithium mining and processing operations.

“SQM has invested $20M in AZS, increasing their stake to 19.99%. This move validates promising lithium potential in the Andover project, and with SQM’s technical expertise, exploration and development is set to accelerate.” Azure Minerals tweeted. 

With SQM’s financial and analytical resources powering their cause, Azure is quickly making progress on their lithium exploration and development project at Andover – which they own 60% in partnership with Creasy Group’s 40%.

AZS seeks to expand Andover into a leading lithium mining and production business worldwide, with funds from SQM aiding the quickening of its exploration and development ventures in the sector.

The firm is now financially well-prepared to develop its plans in Andover and gain access to high-value battery metals such as lithium, nickel, copper, and cobalt.

Azure secured A$4.2 million after SQM subscribed to 16,381,720 of its ordinary shares at A$0.2564 per share in two tranches – the first granting SQM a 4.99% ownership position within the company itself.

To complete Tranche 2, SQM had to abide by a couple of conditions, such as: conveying Azure’s satisfaction with its due diligence investigations; and entering into an offtake agreement that entitles SQM up to 25% of the lithium product from each mining project in which Azure has any involvement -terms being arm’s length and commercially competitive.

SQM has now satisfied all requirements and subscribed to 61,626,471 ordinary Azure shares at A$0.2564 per share, producing an additional A$15.8 million in revenue. 

With this investment by SQM, they are now Azure’s most extensive shareholder boasting operations across Chile and Western Australia and one of the world’s leading lithium producers.

Thanks to the funds, Azure is pursuing its expansion plan on the cby hastening their lithium exploration with intensive diamond and reverse circulation drilling to evaluate the magnitude of high-grade lithium found in surface sample surveys.

To further its mission, Azure will sustain exploration and mine development studies on both the Andover and Ridgeline deposits during 2023.

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