Arizona Metals Corp Announces Upsizing of Private Placement Financing to $10 Million
Arizona Metals Corp Announces Upsizing of Private Placement Financing to
$10 Million
TORONTO--(BUSINESS WIRE)--January 5, 2021--Arizona Metals Corp. (TSXV:AMC,
OTCQB:AZMCF) (the “Company” or “Arizona Metals”) is pleased to announce that due to
strong investor demand, it has increased its previously announced non-brokered private
placement (the “Offering”) (see news release dated January 4, 2021) from 5,263,158 shares of
the Company at a price of $0.95 per share (the “Shares”) for gross proceeds of $5,000,000, to up
to 10,526,319 shares for gross proceeds of up to $10,000,000.
Marc Pais, CEO of Arizona Metals comments, “We are very pleased with the strong support that
we have received from both current and new investors. This is also a testament to the strategic
value of our recently announced acquisition, which substantially expands our holdings of private
land near our Kay Mine Project. The additional funding will also allow for significant expansion
of the Phase 2 drilling program beyond the 11,000 meters planned prior to this financing.”
The Company may pay finders fees in accordance with the rules and policies of the TSX Venture
Exchange (the "Exchange"). The Offering remains subject to the approval of the Exchange. All
securities issued in the Offering will be subject to a statutory hold period of four months and a
day from the Closing Date of the Offering.
On January 4th, 2021, the Company announced that it has entered into a purchase option and sale
agreement (the “Purchase Agreement”) with an arm’s length Arizona based private company to
acquire 100% of six parcels of patented land totaling 107 acres (the “Property”), located 900
metres northeast of its Kay Mine VMS Project. The Property includes the surface, mineral, and
water rights, among other rights and benefits.
The proceeds raised by the Company pursuant to the Offering will be used for the Property
acquisition, exploration drilling under the Kay Mine Phase 2 program, as well as general and
administrative purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the
securities in the United States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption
from such registration is available.
Drill Mobilization for Kay Phase 2 Program
Arizona Metals has contracted Boart Longyear to mobilize the first drill to the Kay Mine project
during the week of January 4th, 2021. Drilling under the Phase 2 program will consist of up to
11,000 m in 29 core drill holes. Drilling will start at the Kay Mine deposit to test for new VMS
lenses in anticlinal hinge zones identified to the north and south of recent drilling, as well as the
up-plunge and down-plunge extensions of known hinges.
Drilling will begin at the Kay Mine targets and progress to targets on strike (north and south) of
the Kay Mine, and then to Central and Western targets as permitting is completed. Permitting is
currently underway for these targets and is progressing well.
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.
Quality Assurance/Quality Control
All of Arizona Metals’ drill sample assay results have been independently monitored through a
quality assurance/quality control (“QA/QC”) protocol which includes the insertion of blind
standard reference materials and blanks at regular intervals. Logging and sampling were
completed at Arizona Metals’ core handling facilities located in Anthem and Black Canyon City,
Arizona. Drill core was diamond sawn on site and half drill-core samples were securely
transported to ALS Laboratories’ (“ALS”) sample preparation facility in Tucson, Arizona.
Sample pulps were sent to ALS’s labs in Vancouver, Canada, for analysis.
Gold content was determined by fire assay of a 30-gram charge with ICP finish (ALS method
Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion
(ALS method ME-ICP61a). Over-limit samples for Au, Ag, Cu, and Zn were determined by ore-
grade analyses Au-GRA21, Ag-OG62, Cu-OG62, and Zn-OG62, respectively.
ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO
17025 accredited. ALS also performed its own internal QA/QC procedures to assure the
accuracy and integrity of results. Parameters for ALS’ internal and Arizona Metals’ external
blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not
aware of any drilling, sampling, recovery, or other factors that could materially affect the
accuracy or reliability of the data referred to herein.
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 expecte d”, “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 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
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
Contacts
For further information:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp