South32 Limited (ASX/JSE/LSE: S32; ADR: SOUHY) has entered into an over-the-counter equity forward contract to acquire up to an additional 15 million shares in Arizona Mining Incorporated (TSX: AZ), equivalent to 4.9% of outstanding common shares.
Under the terms of the contract, a third-party financial institution will seek to purchase the shares in the market over a maximum period of 12 months. Trading activity will occur at the financial institution’s sole discretion, subject to certain agreed trading parameters. South32 will settle the contract in full in advance of commencing the program. The final cost is to be determined on completion and will be based on the daily volume weighted average price of the shares over the period.
South32 Chief Executive Officer Graham Kerr said: “Our continued support of Arizona Mining is aligned with our strategy to invest in high-quality mining projects where we can add value. This incremental investment increases our interest in the highly prospective Hermosa Project and demonstrates our commitment to work with Arizona Mining to unlock its full potential.”
In May 2017, South32 acquired 45 million Arizona Mining shares, or approximately 15 per cent of Arizona Mining as part of a private placement and investor rights agreement. The investor rights agreement allows South32 to acquire up to, but no more than 19.9% of Arizona Mining within an 18-month standstill period without the consent of Arizona Mining’s board of directors.
South32 is a globally diversified metals and mining company with high quality operations in Australia, Southern Africa and South America.
Arizona Mining Inc., an augustagroup company, is a Canadian mineral exploration and development company focused on the exploration and development of its 100%-owned Hermosa Project located in Santa Cruz County, Arizona.