TORONTO, April 21, 2021 /CNW/ - Arizona Metals Corp.
(TSXV: AMC) (the "Company" or "Arizona Metals") is
pleased to announce that the underwriters have exercised their
option in full and intend to close the previously announced bought
deal private placement offering (the "Offering") of
10,000,000 special warrants (the "Special Warrants") of the
Company at a price of $2.10 per
Special Warrant for aggregate gross proceeds of $21,000,000. The Offering is being conducted by a
syndicate of underwriters co-led by Stifel GMP and Clarus
Securities Inc. (the "Underwriters").
Each Special Warrant shall be issued under a special warrant
indenture and shall entitle the holder thereof to receive, without
payment of additional consideration, one (1) unit of the Company
(each a "Unit"). Each Unit shall consist of one (1) common
share of the Company and one-half (0.5) of one common share
purchase warrant (each whole common share purchase warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to
purchase one common share of the Company at a price of $3.00 for a period of 12 months following the
closing date of the Offering (the "Closing Date"), subject
to adjustment as described below.
The Special Warrants shall be deemed exercised on behalf of, and
without any required action on the part of, the holders (and for no
additional consideration) on the earlier of: (i) the second
business day following the date on which a final receipt is
obtained from the Ontario Securities Commission, as principal
regulator on behalf of the securities regulatory authorities in
each of the Qualifying Jurisdictions (as defined herein), for a
(final) short form prospectus qualifying for distribution the Units
underlying the Special Warrants (the "Qualification Date");
and (ii) 5:00 p.m. (time) on the date
which is four months and a day following the Closing Date.
The Company and the Underwriters had previously agreed that in
the event the Qualification Date does not occurred on or before the
date that is ten (10) weeks following the Closing Date, each
Special Warrant shall thereafter entitle the holder to receive,
upon the exercise or deemed exercise of each Special Warrant, for
no additional consideration, 1.1 Units. The parties have agreed to
amend this term to instead provide that in the event the
Qualification Date has not occurred on or before the date that is
ten (10) weeks following the Closing Date, the exercise price of
each Warrant shall be reduced to $2.47 per common share.
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. 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 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 150m 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, 1983,
Westworld Resources).
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.
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp
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, 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 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
SOURCE Arizona Metals Corp.