Almadex Minerals Ltd. said May 18 that it completed the previously announced spinout of its early stage exploration projects, royalty interests and other noncore assets into a new company.
The spinoff company will be named Almadex Minerals Ltd., and the entity previously named Almadex will rebrand as Azucar Minerals Ltd.
Almadex will hold 19 exploration projects, a 1.75% net smelter royalty over the El Cobre copper-gold project, a 2% NSR over the Tuligtic gold-silver project and 16 other royalties over exploration projects in Mexico, Canada and the U.S.
Azucar, meanwhile, will retain the El Cobre project.
As part of the reorganization, Azucar shareholders will receive 1 share in the spinoff entity for each share held.
Azucar will continue to trade under the ticker AMZ on the TSX Venture Exchange and the ticker AXDDF on the OTCQX, while Almadex will start trading on the TSX-V under the symbol DEX.
Concurrently, Azucar completed a nonbrokered private placement with Newcrest Mining Ltd., under which the latter's Newcrest International Pty. Ltd. invested around C$19.1 million in the company. The Newcrest unit acquired 14,391,568 Azucar shares at C$1.33 apiece.
The investment resulted in Newcrest securing a 19.9% interest in Azucar.