Arizona Silver closes $682,762 private placement

Jan 6, 2020

2020-01-03 12:28 ET – News Release

Mr. Mike Stark reports

ARIZONA SILVER ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Arizona Silver Exploration Inc. has closed a non-brokered private placement of 6,827,617 units at a price of 10 cents per unit, raising total gross proceeds of $682,762.

Each unit will consist of one common share of the company and one-half of one transferable common share purchase warrant, with each whole warrant exercisable at a price of 15 cents per share for a period of two years from closing of the private placement, provided that, in the event that the closing price of the company’s shares on the TSX Venture Exchange is 35 cents or greater per share during any 10-consecutive-trading-day period, the Warrants will expire at 4 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 shares of the company under the warrant.

Insiders of the company subscribed for a total of 1,738,671 units, with Mike Stark, president, chief executive officer and a director of the company, subscribing for 400,000 units; Greg Hahn, vice-president of exploration and a director of the company, subscribing for 510,171 units; Brady Stiles, a director of the company, subscribing for 657,500 units; and Dong H. Shim, chief financial officer of the company, subscribing for 171,000 units. As a result, the private placement is a related party transaction (as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions)). The company relied upon the issuer not listed on specified markets and fair market value not more than $2.5-million exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.

The company plans to use the proceeds of the private placement for further exploration of the Philadelphia property in Mohave county and the Ramsey silver mine in La Paz county, both in Arizona, United States, and for general working capital purposes.

http://arizonasilverexploration.com/