Azul Ventures Inc.

December 10, 2012 06:00 ET

Azul Acquires an Additional Mineral Rights Block and Amends Two More Earn-in Agreements on the Core Mineralized Area of the La Higuera Property

TORONTO, ONTARIO--(Marketwire - Dec. 10, 2012) - Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE:AZL) is pleased to announce that it has signed amendments with three more mineral rights owners on the La Higuera project, in addition to the acquisition announced on November 9, 2012.

David O'Connor, President and CEO, said, "Given the difficult financing environment currently being faced by the sector, the Company is pleased to have been able to amend these three agreements which reduces the December 2012 payments significantly and both reduces and delays the overall remaining option payments. These mineral rights blocks cover the core of the most prospective zone at La Higuera, on which two open pit mines are currently exploiting copper oxide ore and beneath which the Company believes there is substantial high grade copper sulphide mineralization."

These newly amended agreements are with the holders of the Gonzalez optioned property (Mina Sol mineral rights), the Molina optioned property (San Antonio mineral rights) and the Cañas optioned property (Benja mineral rights).

Mina Sol Mineral Right Agreement

Under the previous Mina Sol option agreement, the Company was required to make three remaining payments totaling US$842,000, with the next payment of US$132,000 due on December 15, 2012. The amended agreement has delayed the remaining payment requirements as outlined below (US$):

Date Revised Previous
December 15, 2012 $ 40,000 $ 132,000
June 15, 2013 - 325,000
December 15, 2013 46,000 -
June 15, 2014 - 385,000
December 15, 2014 46,000 -
June 15, 2015 325,000 -
June 15, 2016 385,000 -
Total $ 842,000 $ 842,000

In addition, the agreement was amended to allow the owner of the Mina Sol property the right to mine, during the option period, a maximum of 20,000 tonnes/month of iron ore and 2,500 tonnes/month of copper ore (up from 1,000 tonnes/month copper ore) down to a maximum depth of 730 metres above mean sea level. This restricts the possible mining operations during this period to the copper oxide zone, being of no interest to the Company, which plans to develop the underlying copper sulphide resources.

The amended agreement relates to the exploitation concessions referred to as Mina Sol 1-9 and are highlighted below in Figure 1.

San Antonio Mineral Rights Agreement

Under the previous San Antonio option agreement, the Company was required to make three remaining payments totaling US$480,000, with the next payment of US$55,000 due on December 15, 2012. The amended agreement has delayed the remaining payment requirements as outlined below (US$):

Date Revised Previous
December 15, 2012 $ 30,000 $ 55,000
June 15, 2013 - 125,000
December 15, 2013 25,000 -
June 15, 2014 125,000 300,000
June 15, 2015 300,000 -
Total $ 480,000 $ 480,000

The amended agreement relates to the exploitation concessions referred to as San Antonio 1 -3 and are highlighted below in Figure 1.

Benja Mineral Rights Agreement

Under the previous option agreement on the Benja properties, the Company was required to make four remaining payments totaling US$460,000, with the next payment of US$110,000 due on December 15, 2012. The amended agreement eliminates all of the remaining cash payments in exchange for the immediate issuance of 250,000 Azul common shares. Upon the issuance of the 250,000 common shares, all conditions for Azul to have earned a 100% interest in the mining concessions that are subject to the Benja option agreement shall have been fulfilled. The Benja option agreement concessions cover approximately 80 of the 1,230 hectare La Higuera property.

The amended agreement relates to the exploitation concessions referred to as Benja I (1-14) and Benja II (1-14) and are highlighted below in Figure 1.

All of the amended agreements remain subject to the receipt of regulatory approval, including the approval of the TSX Venture Exchange.

Amended and Restated Loan Agreement with Director and Officer

The Company has also entered into amended and restated loan agreements with Tony Wonnacott, a director of the Company and Brad Boland, the Company's Chief Financial Officer and Corporate Secretary. A total of $850,000 has now been made available and advanced to the Company. The loan accrues interest at a rate of 10% per annum and is payable at the end of the term of the loan on December 15, 2012. The loan is unsecured and there are no 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, to acquire a 100% interest in two prospective copper-iron properties in La Higuera, Chile: the La Higuera Property and the Caballo Blanco Property. The properties are located approximately 600 km north of Santiago in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.

The La Higuera Property was assembled as a result of the first-time consolidation of mining rights and covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there had been no known modern exploration conducted on the property. Since the consolidation of the mining rights in June 2011, Azul completed a rock sampling program, completed geophysical work which generated intense magnetic and chargeability anomalies coincident with existing copper workings, finalized a 4,088 m drill program and an underground mapping and sampling program.

The Caballo Blanco Property, which begins approximately 1 km southwest of the La Higuera Property, has historical copper workings and a total of 15 broad spaced reconnaissance holes were completed at Caballo Blanco by previous option holders. The Company has received and logged the core from these historical drill holes.

Cautionary Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain 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 other similar expressions. All statements, other than statements of historical 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 actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Azul undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

To view the map associated with this press release, "Figure 1: Map of Concessions at La Higuera," please visit the following link:

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.

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