Arizona Gold & Silver unveils $3.0 million equity financing backed by Sprott
Arizona Gold & Silver Inc. [AZS-TSXV, AZASF-OTCQB] has announced a $3 million equity financing led by Sprott Group. The company said it plans to use the proceeds of the private placement for further exploration and drilling of the Philadelphia property in Mohave County, Arizona, and for the advancement of other company projects.
The company said it has arranged a non-brokered private placement offering of up to 10 million units priced at 30 cents per unit. Each unit will consist of one common share and one common share purchase warrant, each of which will entitle the holder to purchase one additional share of the company for 40 cents for three years after the date of closing.
As part of the financing terms, Sprott Global Resource Investments Ltd has agreed to act as finders in the private placement, with a lead order of $850,000 from a single United States fund.
“We feel very fortunate to have Sprott take the lead on this financing,” said Mike Stark, President and CEO of Arizona Gold & Silver.
Arizona Gold is a young exploration company, focused on exploring gold-silver properties in western Arizona and Nevada. Its flagship asset is the Philadelphia gold-silver property where the company is drilling off a significant epithermal gold-silver system.
The 100%-owned Philadelphia project is a high-grade gold and silver vein target located in Mohave County, northwestern Arizona. Mohave County is home to the Oatman Mining District, which produced over 2.0 million ounces of
The Philadelphia property was discovered in the 1890s, and mined through the early 1930s producing 40,000 ounces of gold from 80,000 tons.
News that the company is moving to raise $3 million comes after it recently announced initial results of sampling a recently uncovered historic adit and RC drilling at Philadelphia.
“Drilling at Philadelphia has two objectives: to build a bulk tonnage low grade heap leachable resource at grade +0.5 gpt gold, and to delineate high grade portions in the FW and HW veins that were the subject of historic mining,’’ said Greg Hahn, Vice-President, Exploration at Arizona Gold & Silver. “The channel sampling in the recently uncovered adit revealed what is likely the higher-grade core of the Rising Fawn section of the mineral system, where we have limited drill hole coverage,’’ he said. “This higher-grade area remains to be drilled.’’
The company said most of the historic mine workings are inaccessible. However, in January, 2024, the entrance to a 51.8-metre-long adit was uncovered on the Rising Fawn claim that facilitated systematic channel sampling across the mineralized system. That sampling returned 30.5 metres grading 2.33 g/t gold and 15.27 g/t silver. The zone extended from the entrance for 30.5 metres.
A short adit nearby exposes the HW vein. Channel sampling there returned 1.5 metres of 20.4 gold and 20.5 g/t silver in the HW vein. The total interval from zero to 10.67 metres assayed 3.49 g/t gold and 12.33 g/t silver.
On Thursday, Arizona shares were unchanged at 32.5 cents. The shares trade in a 52-week range of 57 cents and 27 cents.