Arizona Silver Announces Closing of Non-Brokered Private Placement

2020-01-03 / @thenewswire

(TheNewswire)

Vancouver, British Columbia – TheNewswire - January 3, 2020 – Arizona Silver Exploration Inc. (the “Company” or “Arizona Silver”) (TSXV:AZS) (OTC:AZASF) is pleased to announce that it has closed a non‑brokered private placement (the “Private Placement”) of 6,827,617 units (the “Units”) at a price of $0.10 per Unit raising total gross proceeds of $682,762.

Each Unit will consist of one common share (the “Shares”) of the Company and one‑half of one transferable common share purchase warrant (each, a "Warrant") with each whole Warrant exercisable at a price of $0.15 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 $0.35 or greater per Share during any 10 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 Shares of the Company under the Warrant.

Insiders of the Company subscribed for a total of 1,738,671 Units, with Mike Stark, President, CEO and a director of the Company, subscribing for 400,000 Units, Greg Hahn, VP 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, CFO 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 (“MI 61-101”)). The Company relied upon the “Issuer Not Listed on Specified Markets” and “Fair Market Value Not More Than $2,500,000” 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 the state of Arizona, USA, and for general working capital purposes.

All securities issued are subject to a four‑month hold period.

On behalf of the Board of Directors:

ARIZONA SILVER EXPLORATION INC.

Mike Stark, President, CEO and Director

Phone: (604) 833-4278

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES