Newcrest acquires indirect 19.9% interest in Almadex's El Cobre project

On February 26, 2018, Almadex Minerals Limited ("Almadex") reported that it entered into a subscription agreement with Newcrest International Pty Ltd, a wholly owned subsidiary of Newcrest Mining Limited ("Newcrest") pursuant to which Newcrest agreed to acquire 14,025,312 common shares of Almadex by way of a non-brokered private placement at a price of C$1.36 per share for aggregate gross proceeds of C$19,074,425. Under the terms of the subscription agreement, the number of common shares purchased by Newcrest and the price per common share may be adjusted in certain instances so Newcrest acquires 19.9% of the issued and outstanding common shares following closing.

The private placement was announced and will close in conjunction with a strategic reorganization of Almadex's business. As part of its reorganization, Almadex will spinout its early stage exploration projects, royalty interests and certain other non-core assets into a newly incorporated company, so that it can focus on the development of its El Cobre gold-copper porphyry project located in the state of Veracruz, Mexico. Upon completion of the spin-out, Almadex will be renamed Azucar Minerals Ltd. ("Azucar"), and upon completion of the private placement, Newcrest will hold 19.9% of the issued shares of Azucar, and will have no ownership interest in the newly incorporated entity.

The completion of the private placement and spinout was announced on May 18, 2018.

Further information can be found on Globe Newswire's website.

Azucar is an exploration company that is focused on exploration of its El Cobre gold-copper porphyry project in Veracruz, Mexico.

Newcrest is one of the world's largest gold mining companies, operating mines in Australia and the AsiaPacific regions.