Arizona Silver arranges $1.65-million private placement

Dec 11, 2020

2020-12-10 16:15 ET – News Release

Mr. Mike Stark reports

ARIZONA SILVER ANNOUNCES PROPOSED CAD$1,650,000 PRIVATE PLACEMENT

Arizona Silver Exploration Inc. has arranged a non-brokered private placement offering of up to 4,714,286 units at a price of 35 cents per unit for gross proceeds of up to $1.65-million. Each Unit will consist of one common share and one- half of a common share purchase warrant (each whole warrant, a ” Warrant”). Each Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.55 for five (5) years following closing of the Private Placement provided, at the discretion of the Company, in the event that the closing price of the Company’s common shares on the TSX Venture Exchange (the “Exchange”) is $0.60 or greater per common share during any five (5) consecutive trading day period the Warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the warrantholders, and the warrantholders will have no further rights to acquire any common shares of the Company under the Warrant.

The Company plans to use the proceeds of the private placement for further exploration of the Philadelphia Property in Mohave County, Arizona, and the advancement of further upcoming Company projects, as well as for general working capital purposes.

To demonstrate continued support of the Company’s growth plans, certain insiders of the Company will participate in the Private Placement. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The related party transaction will be exempt from minority approval and valuation requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities to be issued under the Private Placement nor the consideration to be paid by the insiders will exceed 25% of the Company’s market capitalization.

Completion of the Private Placement remains subject to the approval of the Exchange. All securities issued pursuant to the Private Placement will be subject to a statutory four month hold period. The Company may pay finder’s fees in accordance with the rules and policies of the Exchange.

We seek Safe Harbor.

https://arizonasilverexploration.com/