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.
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.
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