Arizona Metals Corp. Announces Bought Deal Financing /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
Arizona Metals Corp. Announces Bought Deal
Financing
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA
ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR
DISSEMINATION IN
THE UNITED STATES
/
All monetary amounts are expressed in Canadian Dollars, unless otherwise indicated.
TORONTO
,
Dec. 2, 2024
/CNW/ - Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) (the
"
Company
" or "
Arizona Metals
") is pleased to announce it has entered into an agreement with a
syndicate of underwriters (the "
Underwriters
") co-led by Stifel Canada and Scotiabank pursuant to
which the Underwriters have agreed to purchase, on a bought deal basis, 14,705,883 common
shares of the Company (the "
Common Shares
") at a price of C$1.70 per Common Share (the
"
Offering Price
") for gross proceeds to the Company of C$25,000,001 (the "
Offering
").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an
additional 2,205,883 Common Shares under the Offering at the Offering Price, exercisable in whole
or in part, at any time and from time to time on or prior to the date that is 30 days following the
closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If this
option is exercised in full, an additional
C$3,750,001
in gross proceeds will be raised pursuant to the
Offering and the aggregate gross proceeds of the Offering will be
C$28,750,002
.
The Company plans to use the net proceeds from the Offering to fund exploration expenditures at
the Company's Kay Mine Project and Sugarloaf Peak Property, both in
Arizona
, as well as for
working capital and general corporate purposes. The Common Shares will be offered by way of a
short form prospectus to be filed in all provinces of
Canada
, except Québec. The Common Shares
will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the
registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and
other jurisdictions outside of
Canada
provided that no prospectus filing or comparable obligation
arises.
The Offering is scheduled to close on or about
December 20, 2024
and is subject to certain
conditions including, but not limited to, the receipt of all necessary approvals including the approval
of the TSX and the securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any state in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended (the "1933 Act") and
may not be offered or sold in
the United States
absent registration or an applicable
exemption from the registration requirements of the 1933 Act, as amended, and applicable
state securities laws.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Project in
Yavapai County
, which is located on a 1669
acres of patented and BLM mining claims and 193 acres of private land that are not subject to any
royalties . An historic estimate by Exxon Minerals in 1982 reported a "proven and probable reserve
of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver." The
historic estimate at the Kay Deposit was reported by Exxon Minerals in 1982. (Fellows, M.L., 1982,
Kay Mine massive sulphide deposit: Internal report prepared for Exxon Minerals Company) The Kay
Mine historic estimate has not been verified as a current mineral resource. None of the key
assumptions, parameters, and methods used to prepare the historic estimate were reported, and no
resource categories were used. Significant data compilation, re-drilling and data verification may be
required by a Qualified Person before the historic estimate can be verified and upgraded to be a
current mineral resource. A Qualified Person has not done sufficient work to classify it as a current
mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral
resource. The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of
60
m
to at least
900 m
. It is open for expansion on strike and at depth. The Company also owns 100%
of the Sugarloaf Peak Property, in
La Paz County
, which is located on 4,400 acres of BLM claims.
Sugarloaf is a heap-leach, open-pit target and has a historic estimate of "100 million tons containing
1.5 million ounces gold" at a grade of 0.5 g/t (Dausinger, N.E., 1983, Phase 1 Drill Program and
Evaluation of Gold-Silver Potential, Sugarloaf Peak Project,
Quartzsite, Arizona
: Report for
Westworld Inc.) The historic estimate at the Sugarloaf Peak Property was reported by Westworld
Resources in 1983. The historic estimate has not been verified as a current mineral resource. None
of the key assumptions, parameters, and methods used to prepare the historic estimate were
reported, and no resource categories were used. Significant data compilation, re-drilling and data
verification may be required by a Qualified Person before the historic estimate can be verified and
upgraded to a current mineral resource. A Qualified Person has not done sufficient work to classify it
as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current
mineral resource.
The Qualified Person who reviewed and approved the technical disclosure in this release is
David
Smith
, CPG, VP Exploration of the Company, and a qualified person as defined in National
Instrument43-101 –
Standards of Disclosure for Mineral Projects
.
Disclaimer
This press release contains statements that constitute "forward-looking information" (collectively,
"forward-looking statements") within the meaning of the applicable Canadian securities legislation,
All statements, other than statements of historical fact, are forward-looking statements and are
based on expectations, estimates and projections as at the date of this news release. Any
statement that discusses predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always using phrases such as "expects",
or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget",
"scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and
phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will"
be taken to occur or be achieved) are not statements of historical fact and may be forward looking
statements. Forward-looking statements contained in this press release include, without limitation,
statements regarding the completion of the Offering (including the receipt of required regulatory
approvals) and the use of proceeds from the Offering. In making the forward-looking statements
contained in this press release, the Company has made certain assumptions. Although the
Company believes that the expectations reflected in forward-looking statements are reasonable, it
can give no assurance that the expectations of any forward-looking statements will prove to be
correct. Known and unknown risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed or implied by such forward
looking statements. Such factors include, but are not limited to: the Company's ability to obtain
future financing, ; delay or failure to receive required permits or regulatory approvals; and general
business, economic, competitive, political and social uncertainties. Accordingly, readers should not
place undue reliance on the forward-looking statements and information contained in this press
release. Except as required by law, the Company disclaims any intention and assumes no
obligation to update or revise any forward-looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions, changes in factors affecting such
forward- looking statements or otherwise.
Not for distribution to US newswire services or for release, publication, distribution or
dissemination directly, or indirectly, in whole or in part, in or into
the United States
SOURCE
Arizona Metals Corp.
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For further information:
For further information, please contact: Morgan Knowles, Vice President
of Investor Relations, (647) 202-3904, [email protected] or Duncan Middlemiss,
President and CEO, [email protected], www.arizonametalscorp.com
CO: Arizona Metals Corp.
CNW 16:34e 02-DEC-24