Arizona Metals Corp Announces Closing of Bought Deal Public Offering
Arizona Metals Corp Announces Closing of
Bought Deal Public Offering
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
TORONTO, November 12 , 2021 – Arizona Metals Corp. (TSXV:AMC) (the “ Company” or
“Arizona Metals”) is pleased to announce that it has closed its previously announced bought deal
public offering of 11,725,000 common shares (“Common Shares”) of the Company at a price of
C$4.25 per Common Share (the “Offering Price ”), consisting of 8,625,000 Common Shares
issued from treasury for gross proceeds to the Company of C$36,656,250, which includes the full
exercise of the over -allotment option by the underwriters (the “Treasury Offering ”), and
3,100,000 Common Shares sold by certain existing shareholders for gross proceeds of
C$13,175,000 (the “Secondary Offering ” and together with the Treasury Offering, the
“Offering”). The Offering was conducted by a syndicate of underwriters co -led by Stifel GMP
and Clarus Securities Inc. and included Beacon Securities Limited (the “Underwriters”).
In connection with the Offering, the Underwriters received: (i) a cash commission of 6.0% of the
gross proceeds of the Offering, excluding gross proceeds from the sale of Common Shares on a
president’s list agreed upon by the Company and the Underwriters (the “ President’s List”), for
which a commission of 3.0% of such gross proceeds was paid by the Company to the Underwriters;
and (ii) 258,750 non-transferable compensation options (the “Compensation Options”), being
equal to 3.0% of the aggregate number of Common Shares sold under the Treasury Offering. Each
Compensation Option is exercisable into one Common Share of the Company at a price of $ 4.25
per Common Share until November 12, 2022.
Proceeds from the Treasury Offering will be used primarily to fund exploration expenditures at
the Company's Kay Mine in Arizona as well as for working capital and general corporate purposes.
The Company did not receive any proceeds from the Secondary Offering.
The Common Shares were offered in all provinces of Canada, except Quebec, pursuant to a short
form prospectus dated November 5, 2021. The Common Shares were also sold to U.S. buyers on
a private placement basis pursuant to an exemption from the registration requirements in R ule
144A of the United States Securities Act of 1933, as amended, and elsewhere in compliance with
applicable securities laws.
This press release shall not constitute an offer to sell or a 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 "U.S. Securities Act") and
may not be offered or sold to, or for the account or benefit of , persons in the United States
or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act)
absent registration or an exemption from such the registration requirements of the U.S.
Securities Act and applicable states securities laws.
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About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located
on a combination of patented and BLM claims totaling 1,300 acres 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, 2.8g/t gold, 3.03% zinc, and 55g/t silver”. The
historic estimate at the Kay Mine 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 miner al 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 Per son 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 curr ent
mineral resource.
The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60m to at
least 900m. 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 0.5g/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 tr eating 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.
For further information, please contact:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp
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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, witho ut
limitation, the use of proceeds and final approval of the TSX Venture Exchange. . In making the
forward- looking statements contained in this press release, the Company has made certain
assumptions. Although the Company believes that the expectations ref lected 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:
availability of 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 disc laims 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE