Arizona Metals (TSXV: AMC) this morning announced that it will be conducting a bought deal private placement. The financing, lead by Stifel GMP and Clarus Securities, will see the firm raise gross proceeds of $15.0 million through the sale of special warrants.
A total of 7.2 million special warrants are expected to be sold under the financing, with each special warrant priced at $2.10 per each. Each special warrant is to convert into one unit of the company, with each unit containing one common share and one half of a common share purchase warrant of the firm. Each warrant is valid for a period of one year from the date of issuance, at a price of $3.00 per share.
An over-allotment option has also been granted. The financing is currently slated to close April 22, 2021.
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Proceeds from the financing are to be used to expand the firms planned drill program at the firms copper-gold Kay Mine for its Phase 2 expansion, with the program to expand to a total of 75,000 metres from that of 25,000 metres. Proceeds will also be used for working capital and general corporate purposes.
Arizona Metals last traded at $2.47 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
