Arizona Mining Inc. (TSX: AZ) has signed a binding private placement agreement for 45 million common shares at $2.45 per share with South32 Limited (ASX/JSE/LSE: S32) for gross proceeds of $110.3 million.
Upon closing of the private placement, South32 will own approximately 15 per cent 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 per cent 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 per cent 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.
“We are extremely pleased to welcome South32, a global mining company, as a strategic investor in Arizona Mining. South32’s significant investment represents an endorsement of the Taylor zinc-lead-silver deposit and recognizes the deposit’s growing world-class stature and additional prospectivity,” said Jim Gowans, President and CEO. “On closing, we will be fully funded to complete our feasibility study and the state permitting activities for operations on our patented land. We will also continue exploring the property and will add drill rigs to thoroughly test Taylor Deeps, the Trench Vein system and other targets to increase the resource.”
“This is a highly prospective project and is another step in our strategy to identify opportunities outside of our current portfolio. We look forward to working with Arizona Mining to progress this project through the feasibility and permitting stage to unlock the Hermosa Project’s full potential,” said South32 CEO, Graham Kerr.
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