Ann: New Project Delivers High Grade Silver & Gold, page-12

I don’t see how Oposura revenue will support capex at Alacran

The company needs to source funding for Oposura as a first step. The amount of funding needed represents many times Azure’s current market cap

Assuming (as Dolcevita does) Oposura can be debt-financed, subsequent revenue from the mine will be pre-committed as debt repayment years into the future.

The company’s own best-case estimate shows revenue generated no sooner than 2021

Does this mean that Oposura debt is paid sometime around 2025? Depends on a bunch of variables but that date does not seem improbable to me

Viewed in this way, I don’t see how Oposura will generate the revenues required to finance Alacran to the timelines discussed

And of course this assumes Oposura actually has the makings of a profitable mine and will succeed in attracting the capita required to push ahead

Im skeptical on these points. Oposura results have disappointed to date (compared to company’s own projections) particularly with respect to grade

Of course, to expedite revenue generation from Oposura the company could perhaps fund a greater proportion of Oposura capex via equity

This may ultimately be a more attractive option for Tony as without the volume of debt money could be channeled into Alacran almost immediately

But this would represent the very worst scenario for existing shareholders, as the amount of capital required would dilute their holdings to oblivion

These are just my thoughts and ideas. Transitioning from explorer to producer is always a dangerous period for shareholders

Success requires a mgmt team that has prior experience performing this transition and has interests of retail investors at heart. Not sure how Azure stacks up on either