Potential sale of non-core propertiesAZX has a bunch of non-core properties, most of which are out of Quebec Val d'Or area. The notable pieces are the two Au/Cu properties in Manitoba (WIM and Hudvam) which have a global RE of ~1MozAuEq (could be an attractive target for Hudbay), plus many odd and end pieces scattered all over the country. Hence it would be difficult to focus the company activity with this kind of collection of properties. It's a logistics nightmare.
Another potential non-core property, is perhaps Akasaka, the Central Zone, since this has a decent RE (~0.5Moz) and located next to AEM 14 Claims (Akasaba West Zone). The Central Zone could be an attractive target for AEM.
So, if we want to shed the non-core assets then the effort should be spent on the major ones, i.e. WIM, Hudvam, or Akasaba Central Zone, since they would fetch a large amount of cash (say, over $10M). It does not make any sense to talk about small amount of money, say 1 or $2M for selling odds and ends. Go big or go home, as they say.
Message to AZX management: Get out there, contact the prospective/potential buyers (Hudbay, AEM, and others who might be interested in those properties) and negotiate hard to get a fair deal.
Another possibility would be to sell the balance of the JV to Probe, but let's leave it up to PRB to approach us, Sleepy currently has ~0.3Moz, and PRB must spend $5M to get 70%, plus another $2M to get an additional 10% (I believe they have not spent much on the JV property). So, if you were Dave Palmer, what would you do, pay up to get 100% and worry about exploration later?
GH
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