Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) said on Wednesday it had entered into a binding agreement with institutional investors Sorbie Bornholm LP and Sorbie Investments LLP for a C$18 million investment to fund exploration and development at its Philadelphia gold-silver project in Arizona.
The financing will not result in a new control position, the company said.
The investment will be structured as a placement of 22.5 million units priced at C$0.80 each, representing an approximately 18% premium to the company’s five-day volume-weighted average price. Each unit will consist of one common share and one-half of a share purchase warrant, with each full warrant exercisable at C$1.
Part of the shares issued will underpin a “Sharing Agreement,” which the company said could provide additional non-dilutive upside tied to project milestones.
Proceeds from the placement will be used to expand drilling programs and advance exploration at the Philadelphia gold-silver project, located near the historic Oatman Mining District in northwestern Arizona. The area has historically produced more than 2.5 million ounces of gold from high-grade epithermal vein systems.
CEO Mike Stark said the investment would support drilling activities into 2027, with multiple rigs expected to operate at the site.
“The fact that this financing was completed above market value demonstrates strong confidence in our team and in the potential of the project,” Stark said in a statement. “We will be working together like a team building and rewarding financially to both Arizona & Sorbie as well execute drilling and increasing the size of our deposit on the Philadelphia property.”
Sorbie Managing Director Whitney Kofford said the investment marked the firm’s largest to date and reflected confidence in the project’s exploration potential and Arizona’s status as a leading mining jurisdiction.
Arizona Gold & Silver has been advancing exploration at the Philadelphia project, with ongoing drilling aimed at expanding mineralization along the Philadelphia vein and testing additional targets across its land package.