Arizona Metals Corp: Fueling Growth with a Successful Bought Deal Offering

Arizona Metals Corp (TSXV: AMC) has recently announced the successful closing of a bought deal public offering, raising C$36,656,250 in gross proceeds. This strategic move will significantly boost the company's exploration efforts and working capital, aligning with its corporate goals and capital allocation objectives. Let's delve into the details of this offering and its implications for Arizona Metals' future.

The offering, led by Stifel GMP and Clarus Securities Inc., consisted of 11,725,000 common shares at a price of C$4.25 each. The proceeds will primarily fund exploration expenditures at the Kay Mine in Arizona, with the company planning to spend an additional C$27 million on both the Kay Mine and Sugarloaf Peak Gold Project. This allocation ensures that Arizona Metals can invest in its core assets while maintaining liquidity for operational expenses and potential opportunities.



As of June 30, 2021, Arizona Metals had C$27 million in cash, which, combined with the raised capital, will significantly enhance its exploration efforts and working capital. This strategic move aligns with the company's focus on organic growth and value creation. By investing in its Kay Mine project and Sugarloaf Peak Gold Project, Arizona Metals demonstrates a commitment to sustainable operations and growth.

The Kay Mine, a steeply dipping VMS deposit, has been defined from a depth of 60m to at least 900m and is open for expansion on strike and at depth. With a historic estimate 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 Kay Mine is a key asset for Arizona Metals. The company has already spent C$8 million on the Kay Mine project, and this offering will provide additional funds to continue exploration and potentially expand the mine's reserves.



In conclusion, Arizona Metals Corp's successful bought deal public offering is a testament to the company's commitment to growth and value creation. By allocating funds to exploration, working capital, and general corporate purposes, Arizona Metals is balancing short-term needs with long-term growth. As the company continues to invest in its high-quality assets, it positions itself for enduring success in the mining sector.