Arizona Gold & Silver (TSX-V:AZS) has entered into a binding agreement with institutional investors Sorbie Bornholm and Sorbie Investments for C$18 million ($18.57 million).
The investment – subject to final approval from the TSX Venture Exchange – is structured through a 22.5 million unit placement, representing an 18% premium to the five-day volume weighted average price.
Each unit is priced at C$0.80 per unit and each full warrant is priced at C$1.
The funds will be used to advance the Philadelphia Gold-Silver Project in the US. Ongoing exploration porgrams have focused on expanding mineralisation along the Philadelphia vein and testing additional targets across the company’s broader land package.
Arizona Gold says drilling has confirmed the continuity and potential scale of gold-silver mineralisation at both shallow and deeper depths.
CEO Mike Stark says the long-term capital commitment will ensure and support drilling well into 2027, with multiple rigs operating at Philadelphia.
“The fact that this financing was completed above market value demonstrates strong confidence in our team and in the potential of the project,” Stark says.
“Whitney and I have been working on this transaction for several months, and throughout that process I have come to appreciate Sorbie’s approach to building long-term investment relationships.
“We will be working together like a team building and rewarding financially to both Arizona and Sorbie as well as executing drilling and increasing the size of our deposit on the Philadelphia property.”
Arizona Gold & Silver is a US-focused precious metals explorer focused on its Philadelphia Project which lies within the historical Oatman Mining District, an area with a long history of gold production from epithermal vein systems.
Sorbie Bornholm is a global investment firm built on partnership and innovation.
Write to Aaliyah Rogan at Mining.com.au
Images: Arizona Gold & Silver
