Vancouver, British Columbia, March 3, 2020 – Arizona Silver Exploration. (TSXV: AZS) (OTCQB: AZASF) is pleased to announce that it has closed the first tranche (the “First Tranche“) of the non-brokered private placement previously announced on February 28, 2020 (the “Private Placement”) issuing 6,580,400 units (the “Units) at a price of CAN$0.15 per Unit, for gross proceeds of C$ 987,060.00 to date. There were no brokers shares or fees payable upon close the Private Placement.
Details of the Private Placement
The private placement will be comprised of up to 7,333,333 units of the Company (the “Units “) at a price of CAD$0.15 per Unit for total proceeds of up to CAD$1,100,000. Each Unit will consist of one common share of the Company and one half of one transferable common share purchase warrant (each, a “Warrant “). Each whole Warrant is exercisable at a price of CAD$0.22 per share for a period of five years from closing of the private placement, provided that the closing price of the Company’s common shares on the TSX Venture Exchange is CAD$0.52 or greater per common share during a 10 consecutive trading day period. 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 warrant holders. The warrant holders will have no further rights to acquire any common shares of the Company under the Warrant. Due to expected lab results in the near future, the Company will close the financing in the coming days.
Brady Stiles, a director and insider of the Company subscribed for a total of 5,433,067 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 Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange. All securities issuable pursuant to the Private Placement are subject to a four month hold period from the date of issuance in accordance with applicable Canadian securities laws
The Company plans to use the proceeds of the private placement for further exploration of the Philadelphia Property in Mohave County, Arizona, and the Ramsey silver mine in La Paz County, Arizona, as well as for general working capital purposes.
Please refer to our web site for all news and updated property information. www.arizonasilverexploration.com
On behalf of the Board of Directors:
ARIZONA SILVER EXPLORATION INC.
Mike Stark, CEO, President
Arizona Silver Exploration Inc.
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.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. Forward-looking statements in this news release include statements in relation to the timing, cost and other aspects of the 2019 exploration program; objectives or expectations of the Company. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.