Evolution Mining (ASX:EVN), through its wholly owned subsidiary Evolution Mining Gold Operations, has announced a non-brokered strategic private placement into Arizona Gold & Silver (TSX-V:AZS) for total gross proceeds of C$12 million ($12.11 million).
Under the terms of the agreement, Evolution will acquire 15,056,004 units of Arizona Gold & Silver at a price of C$0.80 per unit. Each unit consists of one common share and one-half of a common share purchase warrant.
Following the closing of the investment, Evolution will hold an equity interest of 9.9% in Arizona Gold & Silver on a non-diluted basis.
Arizona Gold & Silver CEO Mike Stark says that the strategic investment is an important milestone for the company.
“Evolution Mining is a C$23 billion globally recognised gold producer with an outstanding technical reputation. Its investment reflects confidence in our team, our assets, and our long-term vision.”
Arizona Gold & Silver intends to use the majority of the gross proceeds to accelerate exploration at its flagship Philadelphia Gold-Silver Project in Arizona, US.
Priority exploration initiatives include the expansion of the ‘high-grade’ Perry Zone, testing the 3km Arabian Fault corridor, evaluating the broader potential for Red Hills, and advancing the eastern and northeastern hyperspectral anomalies.
Upon closing of the investment, the two parties will enter into an investor rights agreement, providing Evolution with the right to participate in future equity issuances to maintain its pro rata interest in Arizona Gold & Silver.
Evolution will also receive top-up rights, the right to nominate a board member, the right to participate in a technical committee in an advisory capacity, and a first right refusal over the sale of a 10% or greater interest in the Philadelphia Project.
Evolution Mining is a leading gold miner with six operating mines.
Arizona Gold & Silver is an exploration company focused on precious metals resources in Arizona and Nevada.
Write to Amy Rotman at Mining.com.au
Images: Arizona Gold & Silver
