TORONTO, Nov. 18, 2019 (GLOBE NEWSWIRE) -- Arizona Metals Corp. (TSXV: AMC) (the “Company” or “AMC”), would like to announce that it has granted an aggregate of 800,000 incentive stock options to certain officers and directors of the Company under its Stock Option Plan. All options are exercisable at $0.40 per common share, vest immediately on the date of grant and have an expiry date of November 15, 2024.
The Company would also like to announce that it intends to reprice 6,118,000 of the Company’s outstanding warrants expiring on August 1, 2022 which were issued pursuant to the financing (the "QT Financing") completed concurrently with the Company's Qualifying Transaction that closed on August 1, 2019. In connection with the QT Financing, an aggregate of 6,755,000 warrants were issued by the Company, each with an exercise price of $0.60 (the "Warrants"). Directors and officers of the Company currently hold an aggregate of 1,312,500 of the Warrants. Pursuant to the policies of the TSX Venture Exchange, if directors and officers of the Company hold more than 10% of the number of outstanding Warrants, their Warrants must only be repriced on a pro rata basis. Accordingly, an aggregate of 675,500 of the Warrants held by directors and officers of the Company will be repriced, resulting in the repricing of a total of 6,118,000 of the outstanding Warrants. The Company intends to amend these Warrants to have an exercise price of $0.50 per Warrant. This change has been authorized and approved by the Board of Directors.
About Arizona Metals Corp.
AMC is a mineral exploration company based in Toronto, Ontario. AMC owns 100% of approximately 351 acres of patented and unpatented claims covering and surrounding the past-producing Kay mine (“Kay Mine”), located in Yavapai County, Arizona, approximately 50 miles north of Phoenix. The Kay Mine claims are not subject to any royalties. The Kay Mine property hosts an historic resource estimate, defined by Exxon Minerals (Fellows, 1982) of 6.4 million short tons at a grade of 2.2% copper, 2.8g/t gold, 3.03% zinc, and 55g/t silver. Exxon used a copper equivalent cut-off grade of 2%. The historic estimate was defined from a depth of approximately 100m to 900m, and based on approximately 103 underground drill holes on 12 levels, thousands of underground samples, and approximately 7,500m in surface drilling. AMC has planned an initial drill program of approximately 5,000m. The 1982 estimate by Exxon did not use CIM categories. AMC’s QP has not done sufficient work to classify the historic estimate as a current resource, and AMC is not treating the historic estimate as a current resource. In March 2019, AMC staked an additional 1,000 acres of BLM claims contiguous with the recently acquired Kay Mine claims. AMC also completed a helicopter VTEM survey totaling 102 line kilometres covering the acquired and staked claims.
AMC also owns 100% of the Sugarloaf Peak Gold Project, which is composed of 222 BLM claims with dimensions of approximately 4km x 6km, and hosts an historic resource “containing about 1.5 million ounces gold and 25 million ounces of silver in a volume of about 100 million tons” (Dausinger, 1983). This estimate was based on work by Westworld Resources (1981-1983) which totaled 2,500 feet of drilling in 10 holes to a maximum depth of only 76m. The historic estimate was not defined using CIM categories. AMC’s QP (as defined below) has not done sufficient work to classify the historic estimate as a current resource, and AMC is not treating the historic estimate as a current resource. Additional drilling totaling 4,400m was completed by Riverside Resources and Choice Gold between 2009 and 2012, and a Titan-24 geophysical survey was also undertaken during this period. The average drill hole spacing at Sugarloaf is 150m and AMC estimates an initial drill program of at least 10,000m will be required. AMC’s QP has not done sufficient work to classify the historic estimate as a current resource, and the Company is not treating the historic estimate as a current resource.
The technical information contained in this news release was reviewed and approved by David S. Smith, CPG, who is a Qualified Person (“QP”) under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
For further information, please contact:
Chief Executive Officer
Arizona Metals Corp.
This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the re-pricing of the Company’s Warrants. In making the forward- looking statements contained in this press release, the Company has made certain assumptions, including that: all applicable regulatory approvals for the Warrant re-pricing will be received. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
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