Azarga Metals Issues Shares to Baker Steel for Semi-Annual Interest

Rhea-AI Summary

Azarga Metals Corp. has issued 1,505,730 common shares to Baker Steel Resources Trust Limited to settle a semi-annual interest payment of C$188,216 on a US$3.5 million convertible loan. This transaction was disclosed on April 12, 2021, prior to the official announcement on April 15, 2021. Azarga Metals owns 100% of the Unkur Copper-Silver Project in eastern Russia, which has an inferred resource of 62 million tonnes at 0.53% copper and 38.6g/t silver.

Positive

• Issuing shares for interest payment can preserve cash flow.
• Ownership of Unkur Copper-Silver Project provides a significant resource base.

Negative

• Issuing shares can dilute existing shareholders' equity.
• Dependence on convertible loan might raise concerns about financial stability.

VANCOUVER, BC / ACCESSWIRE / April 15, 2021 / AZARGA METALS CORP. ("Azarga Metals" or the "Company") (TSXV:AZR) as announced on 12 April 2021, the Company has issued to Baker Steel Resources Trust Limited a total of 1,505,730 common shares to settle its semi-annual interest payment of C$188,216 on a US$3.5 million (fixed at C$4,692,550) convertible loan.

About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company that owns 100% of the Unkur Copper-Silver Project in the Zabaikalsky administrative region in eastern Russia. On completion of a first phase physical exploration program in 2016-2018, the Company estimated an Inferred Resource of 62 million tonnes at 0.53% copper and 38.6g/t silver for the project in the report entitled "Technical Report and Preliminary Economic Assessment for the Unkur Copper-Silver Project, Kodar-Udokan, Russian Federation" dated effective 30, August 2018 authored by Tetra Tech Mining & Minerals.

AZARGA METALS CORP.
"Michael Hopley"
Michael Hopley,
President and Chief Executive Officer

For further information please contact: Doris Meyer, at +1 604 536-2711 ext. 6, visit www.azargametals.com, or follow us on Twitter @AzargaMetals. The address of the head office of Azarga Metals is Unit 1 - 15782 Marine Drive, White Rock, BC V4B 1E6, British Columbia, Canada.

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.

SOURCE: Azarga Metals Corp.

View source version on accesswire.com:
https://www.accesswire.com/640657/Azarga-Metals-Issues-Shares-to-Baker-Steel-for-Semi-Annual-Interest

FAQ

What is Azarga Metals Corp. known for?

Azarga Metals Corp. is known for its mineral exploration and ownership of the Unkur Copper-Silver Project in Russia.

What was the recent share issuance by Azarga Metals Corp. for?

Azarga Metals Corp. issued shares to settle a semi-annual interest payment on a convertible loan.

What is the significance of the Unkur Copper-Silver Project?

The Unkur Copper-Silver Project has an inferred resource of 62 million tonnes with significant copper and silver content.

How much interest did Azarga Metals Corp. pay recently?

Azarga Metals Corp. paid a semi-annual interest of C$188,216.

What is the value of the convertible loan held by Azarga Metals Corp.?

The convertible loan held by Azarga Metals Corp. is valued at US$3.5 million.