Arizona Metals upsizes bought deal offering to $18.06 million

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Arizona Metals Corp. [AMC-TSXV; AZMCF-IOTCQB] said Tuesday April 6 that it is increasing the size of a previously announced bought deal private placement offering which is now expected to raise $18.06 million. That’s up from the earlier $15 million target.

Proceeds will be used to fund exploration and development work at the wholly-owned Kay mine copper-gold volcanogenic massive sulphide project in Arizona, and for working capital and general corporate purposes, the company said in a press release.

Under the amended terms, a syndicate of underwriters has agreed to purchase 8.6 million Arizona special warrants at $2.10 per warrant, a move that will generate gross proceeds of $18.06 million.

The company said it has agreed to grant the underwriters an overallotment option to purchase up to an additional 1.4 million special warrants at the same price at any time before a date that is 48 hours before the closing date, which is expected to be on April 22, 2021 (subject to regulatory approval).

Each special warrant will be issued under a special warrant indenture and entitle the holder to receive one unit of the company, each consisting of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company at $3 for a period of one year after the closing date of the offering.

The special warrants shall be deemed exercised on behalf of the holders on the earlier of:

The second business day following the date on which the final receipt is obtained from the Ontario Securities Commission for a (final) short form prospectus qualifying for distribution the units underlying the special warrants.

Arizona Metals is a well-funded exploration company with 100% ownership in two projects in Arizona.

The company is led by President and CEO Marc Pais, a co-founder (with Arizona Metals Chairman Paul Reid) and former President of Castle Mountain Mining, which was acquired by Equinox Gold Corp. [EQX-TSXV; EQXGF-OTC].

Its flagship asset is the Kay Mine Volcanogenic Massive Sulphide (VMS) copper-gold project, a high grade VMS target, where mining activity dates back before 1900. Previous operators include Exxon Minerals which held the property from 1972-74

As reported by Exxon Minerals in 1982, the project contains a historic resource of 5.8 million tons, grading 2.8 g/t gold, 2.2% copper, 3.03% zinc, 55 g/t silver.


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