Arizona Metals Corp. Announces Closing of Bought Deal Public Offering

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/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

All monetary amounts are expressed in Canadian Dollars, unless otherwise indicated.

TORONTO, Dec. 20, 2024 /CNW/ - Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) (the "Company" or "Arizona Metals") is pleased to announce that it has closed its previously announced bought deal public offering of 15,927,700 common shares (the "Common Shares") of the Company at a price of $1.70 per Common Share (the "Offering Price") for gross proceeds to the Company of $27,077,090 (the "Offering"), which includes the partial exercise of the over-allotment option by the underwriters to purchase 1,221,817 Common Shares. The Offering was conducted by a syndicate of underwriters co-led by Stifel Nicolaus Canada Inc. and Scotiabank, and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Beacon Securities Limited and Clarus Securities Inc. (the "Underwriters").

Arizona Metals Logo (CNW Group/Arizona Metals Corp.)
Arizona Metals Logo (CNW Group/Arizona Metals Corp.)

In connection with the Offering, the Underwriters received a cash commission of 5.5% of the gross proceeds of the Offering, excluding gross proceeds from the sale of Common Shares on a president's list agreed upon by the Company and the Underwriters (the "President's List"), for which a commission of 2.75% of such gross proceeds was paid by the Company to the Underwriters.

The Company plans to use the net proceeds from the Offering to fund exploration expenditures at the Company's Kay Mine Project and Sugarloaf Peak Property, both in Arizona, as well as for working capital and general corporate purposes.

The Common Shares were offered in all provinces of Canada, except Quebec, pursuant to a short form prospectus dated December 18, 2024. The Common Shares were also sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and elsewhere in compliance with applicable securities laws.

Certain directors and officers of the Company (collectively, the "Insiders") acquired an aggregate of 88,236 Common Shares in the Offering. Participation by the Insiders in the Offering was considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders' participation in the Offering pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of any securities issued to, nor the consideration paid by, the Insiders exceeded 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to closing of the Offering as the Insiders' participation had not been confirmed at that time.