Arizona Metals Corp. (TSXV: AMC, OTCQB: AZMCF) (the 'Company' or 'Arizona Metals') is pleased to announce that it has entered into a purchase option and sale agreement with an arm's length Arizona based private company (the 'Vendor') to acquire 100% of six parcels of patented land totaling 107 acres, located 900 metres northeast of its Kay Mine VMS Project.
The Property includes the surface, mineral, and water rights, among other rights and benefits.
Marc Pais, CEO of Arizona Metals comments, 'The acquisition of the Property is another significant de-risking step in moving the Kay Mine closer to a production decision. Including the 71 acres of patented land that host our Kay Mine deposit, this acquisition will increase our total holdings of patented land to 178 acres. The Property will provide a base for the upcoming Phase 2 drill program, as well as a significant area of private land (including a number of operating water wells) for any future development or production scenarios.'
Transaction Details
The Purchase Agreement to acquire the Property calls for total payments of US$2,250,000 to the Vendor as consideration for a 100% interest in the Property. Staged payments are to be made according to the following schedule, with the closing of the acquisition to occur no more than 30 days following completion of the final payment
Upon entering into the Purchase Agreement: US$200,000
On or before March 31, 2021: US$500,000
On or before December 31, 2021: the balance of US$1,550,000
The terms of the Purchase Agreement include a due diligence period ending on March 31 st, 2021. The first payment will be held in escrow during this period, and is fully refundable should the Corporation not be satisfied with the results of its due diligence investigations on the Property, including an environmental assessment.
The Consideration for the acquisition of the Property will be funded with a portion of the net proceeds of the financing detailed below.
Financing
The Company also intends to complete a non-brokered private placement (the 'Offering') of a minimum of 5,263,158 common shares of the Company (each, a 'Share') at a price of $0.95 per Share for gross proceeds of a minimum of CDN$5,000,000.
Net proceeds from the Offering will be used to fund the acquisition of the Property detailed above, further exploration the Kay Mine Project in Arizona, and general and administrative purposes.
The Offering is subject to regulatory approval, including approval by the TSX Venture Exchange, and all securities to be issued pursuant to the financing are subject to a hold period under applicable Canadian securities legislation that expires four months and one day after the closing date of the Offering.
Drill Mobilization for Kay Phase 2 Program
Arizona Metals has contracted Boart Longyear to mobilize the first drill to the Kay Mine project during the week of January 4 th, 2021. Drilling under the Phase 2 program will consist of up to 11,000 m in 29 core drill holes. Drilling will start at the Kay Mine deposit to test for new VMS lenses in anticlinal hinge zones identified to the north and south of recent drilling, as well as the up-plunge and down-plunge extensions of known hinges.
Drilling will begin at the Kay Mine targets and progress to targets on strike (north and south) of the Kay Mine, and then to Central and Western targets as permitting is completed. Permitting is currently underway for these targets and is progressing well.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties. An historic estimate by Exxon Minerals in 1982 reported a 'proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver.' The historic estimate at the Kay Mine was reported by Exxon Minerals in 1982. (Fellows, M.L., 1982, Kay Mine massive sulphide deposit: Internal report prepared for Exxon Minerals Company)
The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.
The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of '100 million tons containing 1.5 million ounces gold' at a grade of 0.5 g/t (Dausinger, N.E., 1983, Phase 1 Drill Program and Evaluation of Gold-Silver Potential, Sugarloaf Peak Project, Quartzsite, Arizona: Report for Westworld Inc.)
Contact:
Marc Pais
Tel: (416) 565-7689
Email: mpais@arizonametalscorp.com
Web: www.arizonametalscorp.com
ARIZONA METALS CORP. 
