Building A Base For Upcoming Drill Programme
Arizona Metals Corp. (TSXV:AMC) has entered into a purchase option and sale agreement with an arm’s length Arizona-based private company to acquire 100% of six parcels of patented land totalling 107 acres, located 900m northeast of its Kay Mine VMS Project in Arizona.
CEO, Marc Pais, said the Property includes the surface, mineral, and water rights, among other rights and benefits.
“The acquisition of the Property is another significant de-risking step in moving the Kay Mine closer to a production decision,” Mr Pais said.
“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 programme, as well as a significant area of private land (including a number of operating water wells) for any future development or production scenarios.”
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 company announced it intends to complete a private placement for gross proceeds of a minimum of C$5 million.
Arizona Metals has contracted Boart Longyear to mobilise the first drill to the Kay Mine project during the week of January 4th, 2021.
Drilling under the Phase 2 programme 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.
