Azimut and Centerra Sign Option Agreement for the Corvet and Kaanaayaa Properties
Azimut earns up to 70% of Quebec gold-copper properties through a $16 million spend and $850,000 cash payment.
Azimut Exploration Inc. (AZM) has entered into a definitive option agreement with Centerra Gold Inc. to earn up to a 70% interest in the Corvet and Kaanaayaa gold-copper properties located in Quebec. The transaction is structured in two stages. Centerra can earn an initial 51% interest by spending $6 million and paying $250,000 over four years. This is followed by a second option to earn an additional 19%, bringing the total interest to 70%, which requires delivering a preliminary economic assessment (PEA) with a minimum 1 moz AuEq resource, spending $10 million, and paying up to $600,000.
If Centerra does not exercise the second option, its interest drops to 49% and Azimut’s rises to 51%. The transaction is classified as a related-party transaction as Centerra holds approximately 12.67% of Azimut’s shares. The properties total 556.3 km2 in the Eeyou Istchee James Bay region. Initial systematic till sampling is scheduled to start mid-October 2026.
Azimut Exploration Inc. (AZM) has entered into an agreement that aligns with its strategy of advancing prospective properties through partner-funded exploration, thereby preserving corporate cash for flagship projects such as Wabamisk and Elmer. Centerra’s commitment of up to $16 million in exploration spend significantly de-risks the Corvet and Kaanaayaa properties, which are currently in early stages.
The deal structure protects Azimut’s control of the assets. If only the first option is exercised, Azimut retains a 51% majority stake. Full dilution to 70% for Centerra is contingent on delivering a preliminary economic assessment (PEA) with 1 million ounces of gold equivalent (AuEq), a target that may not be met.
The stock is trading near its 52-week low of $0.51. The market appears to view this development as an expected follow-up to Centerra’s August 2026 $7 million equity investment, rather than a surprise catalyst.
Azimut Exploration Inc. (AZM) is a Quebec-based exploration company with a multi-commodity portfolio focusing on gold, antimony, nickel, and lithium. The company’s flagship asset is the Wabamisk Property, which hosts the Rosa Zone, characterized by high-grade gold with a 1.4 km strike and visible gold in core, as well as the Fortin Zone, an antimony-gold deposit with a 1.8 km strike that remains open to depth.
Other key assets include the Elmer Property, which contains the Patwon gold deposit with 311,000 ounces in the Indicated category and 514,000 ounces in the Inferred category; the Kukamas Property, featuring the high-grade Ni-PGE Perseus zone, which is 50% owned by KGHM; and Wabamisk East, which hosts lithium pegmatites. Strategically, the company is pivoting from lithium-heavy assets to gold, copper, and nickel exploration following the sale of the Galinee and Pikwa properties.