VANCOUVER, British Columbia, Dec. 07, 2017 (GLOBE NEWSWIRE) -- Arizona Mining Inc. (TSX:AZ) (“Arizona Mining” or the “Company”) announces that South32 Limited (“South32”) has exercised, in full, its top-up right to September 30, 2017 pursuant to the Investor Rights Agreement (“the Agreement”) with the Company to subscribe for an additional 1,432,982 common shares of Arizona Mining at a price of C$3.14 per share, for a total of C$4.5 million, maintaining its current ownership in the Company of 15%.
Following its initial investment of C$110 million for 45 million common shares or 15% of Arizona Mining in a private placement announced on May 1, 2017, South32 reported on September 14, 2017 that it had entered into an over-the-counter equity forward contract to acquire up to an additional 15 million shares, equivalent to 4.9% of Arizona Mining shares, in the open market over the ensuing 12 months.
The Agreement allows South32 to acquire up to, but no more than, 19.9% of Arizona Mining within an 18-month standstill period without the consent of Arizona Mining’s board of directors.
About Arizona Mining
Arizona Mining Inc. (an augustagroup company) is a mineral exploration and development company focused on the exploration and development of its 100%-owned Hermosa Project located in Santa Cruz County, Arizona. The Taylor Deposit, a zinc-lead-silver carbonate replacement deposit, has a resource of 8.6 million tons in the Measured Mineral Resource category grading 4.2% zinc, 4.0% lead and 1.6 opt silver, or 9.7% ZnEq, plus 63.8 million tons in the Indicated Mineral Resource category grading 4.5% zinc, 4.4% lead and 1.9 opt silver, or 10.6% ZnEq, and 38.6 million tons of Inferred Mineral Resources grading 4.4% zinc, 4.2% lead and 3.1 opt silver or 11.6% ZnEq, all reported in accordance with NI 43-101 guidelines utilizing a 4% ZnEq cutoff grade. The Taylor Deposit remains open to the north, west and south over land controlled by the Company and will be aggressively drilled to test the limits of the resource. The Company’s other project on the Hermosa property is the Central Deposit, a silver-manganese manto oxide project.
