Business
Arizona Metals to Acquire Key Patented Claims to Expand Kay Mine Project in Arizona and Arranges Private Placement Financing
TORONTO / Jan 04, 2021 / Business Wire / Arizona Metals Corp. (TSXV:AMC, OTCQB:AZMCF) (the “Company” or “Arizona Metals”) is pleased to announce that it has ent
About this update from Arizona Metals Corp
[{"type":"text","content":"TORONTO / Jan 04, 2021 / Business Wire / Arizona Metals Corp. (TSXV:AMC, OTCQB:AZMCF) (the “Company” or “Arizona Metals”) is pleased to announce that it has entered into a purchase option and sale agreement (the “Purchase Agreement”) with an arm’s length Arizona based private company (the “Vendor”) 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. Marc Pais, CEO of Arizona Metals comments, “The acquisition of the Property is another significant de-risking step in moving the Kay Mine closer to a production decision. Including the 71 acres of patented land that host our Kay Mine deposit, this acquisition will increase our total holdings of patented land to 178 acres. The Property will provide a base for the upcoming Phase 2 drill program, as well as a significant area of private land (including a number of operating water wells) for any future development or production scenarios.” Transaction Details The Purchase Agreement to acquire the Property calls for total payments of US$2,250,000 to the Vendor as consideration for a 100% interest in the Property. Staged payments are to be made according to the following schedule, with the closing of the acquisition to occur no more than 30 days following completion of the final payment: Upon entering into the Purchase Agreement: US$200,000 On or before March 31, 2021: US$500,000 On or before December 31, 2021: the balance of US$1,550,000 The terms of the Purchase Agreement include a due diligence period ending on March 31st, 2021. The first payment will be held in escrow during this period, and is fully refundable should the Corporation not be satisfied with the results of its due diligence investigations on the Property, including an environmental assessment. The Consideration for the acquisition of the Property will be funded with a portion of the net proceeds of the financing detailed below. Financing The Company also intends to complete a non-brokered private placement (the “Offering”) of a minimum of 5,263,158 common shares of the Company (each, a “Share”) at a price of $0.95 per Share for gross proceeds of a minimum of CDN$5,000,000. Net proceeds from the Offering will be used to fund the acquisition...