Arizona Metals Corp. Announces Upsize to Previously-Announced Bought Deal Financing /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
Arizona Metals Corp. Announces Upsize to
Previously-Announced 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
,
Oct. 22, 2021
/CNW/ - Arizona Metals Corp. (TSXV: AMC) (OTCQX: AZMCF) (the
"
Company
" or "
Arizona Metals
") is pleased to announce it has entered into an amended agreement
with Stifel GMP and Clarus Securities Inc. (the "
Lead Underwriters
") to increase the size of the
previously-announced offering (the "
Offering
"). Pursuant to the amended terms of the Offering, the
Lead Underwriters have agreed to purchase, on a bought deal basis, 10,600,000 common shares of
the Company (the "
Common Shares
") at a price of C$4.25 per Common Share (the "
Offering
Price
"), consisting of 7,500,000 Common Shares issued from treasury (the "
Treasury Offering
")
for gross proceeds to the Company of C$31,875,000 and 3,100,000 Common Shares sold by
certain existing shareholders (the "
Secondary Offering
" and together with the Treasury Offering,
the "
Offering
") for gross proceeds of
C$13,175,000
.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an
additional 1,125,000 Common Shares under the Treasury 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$4,781,250
in gross proceeds will be raised pursuant to
the Treasury Offering and the aggregate gross proceeds of the Treasury Offering will be
C$36,656,250
.
The Company plans to use the net proceeds from the Treasury Offering to fund exploration
expenditures at the Company's Kay Mine in
Arizona
as well as for working capital and general
corporate purposes. The Company will not receive any proceeds from the Secondary Offering.
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
November 12, 2021
and is subject to certain
conditions including, but not limited to, the receipt of all necessary approvals including the approval
of the TSX Venture Exchange 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 application
state securities laws.
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, 2.8 g/t gold, 3.03% zinc, and 55 g/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 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.
This press release contains statements that constitute "forward-looking information" (collectively,
"forward-looking statements") within the meaning of the applicable Canadian securities legislation,
Forward-looking statements contained in this press release, include, without limitation, statements
regarding the completion of the Company's previously-announced acquisition, use of proceeds from
the Offering, and drilling and exploration activity at the Company's properties. 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 acquisition of the Property, including completion of due diligence and the satisfaction of the
Company's payment obligations under the Purchase Agreement, and the completion of 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: 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 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp
SOURCE
Arizona Metals Corp.
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http://www.newswire.ca/en/releases/archive/October2021/22/c9288.html
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For further information:
Marc Pais, President and CEO Arizona Metals Corp., (416) 565-7689,
CO: Arizona Metals Corp.
CNW 18:58e 22-OCT-21