Arizona Mining Inc. (TSX: AZ) has completed previously announced private placement of 45 million common shares at $2.45 per share with South32 Limited (ASX/JSE/LSE: S32) for gross proceeds of $110.3 million.
South32 now owns approximately 15% of the shares in Arizona Mining on a non-diluted, post subscription basis.
In addition to pre-emptive, top-up and anti-dilution rights which enable South32 to maintain its 15% interest in Arizona Mining, South32 has the right to nominate one director to the board of Arizona Mining provided it maintains a minimum 12.5% interest. South32 will also be entitled to appoint one member to an operations committee which will direct the operational and technical work relating to the Hermosa Project, which includes the Taylor Deposit, located in Santa Cruz County, Arizona.
“The Company is now fully funded to complete its plans over the next year including advancing the Company’s Taylor Deposit to the feasibility and permitting stage and an aggressive drilling campaign to further test the size of the Taylor Deposit,” said Jim Gowans, President and CEO.
Arizona Mining Inc. 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.
Perth, Australia based South32 is a globally diversified metals and mining company with high-quality and well maintained operations which mine and produce bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America.
photo credit: Arizona Mining