Skip to main content

South32 to make strategic investment in Arizona Mining

Published by
World Coal,


South32 Limited (ASX, JSE, LSE: S32) (South32) has announced that it has entered into a binding agreement with Arizona Mining Inc. (TSX: AZ) (Arizona Mining) for the sale to South32 on a private placement basis of 45,000,000 common shares (Shares) in Arizona Mining for CAN$2.45 per share for a total investment of CAN$110.3 million (Placement).

Upon the closing of the Placement, which is subject to certain customary conditions, South32 will own approximately 15% of the shares in Arizona Mining on a non-diluted, post subscription basis.

In addition to pre-emptive, top-up and anti-dilution rights which enable South32 to maintain its 15% interest in Arizona Mining, South32 has the right to nominate one Director to the Board of Arizona Mining provided it maintains a minimum 12.5% interest. South32 will also be entitled to appoint one member to an operations committee which will direct the operational and technical work relating to the Hermosa Project, which includes the Taylor Deposit, located in Santa Cruz County, Arizona. The Taylor Deposit is a zinc-lead-silver sulfide deposit. The Placement proceeds will be used to advance the Taylor Deposit to the feasibility and permitting stage.

The Placement will be completed post the execution of a subscription agreement and regulatory approvals, including by the Toronto Stock Exchange, and is expected to close following the receipt of these approvals. South32 Chief Executive Officer, Graham Kerr said: “This is a highly prospective project and is another step in our strategy to identify opportunities outside of our current portfolio.” “We look forward to working with Arizona Mining to progress this project through the feasibility and permitting stage to unlock the Hermosa Project’s full potential.”

Read the article online at: https://www.worldcoal.com/mining/03052017/south32-to-make-strategic-investment-in-arizona-mining/


 

Embed article link: (copy the HTML code below):