Diversified miner South32 will invest $C110.3 million ($107.14 million) in Canadian explorer Arizona Mining, which is advancing a multi-commodity project in the United States.
South32 will acquire 45 million shares in Arizona at $C2.45 each, about 15 per cent of the junior company’s share base.
Arizona is focused on the exploration and development of its Hermosa-Taylor zinc-lead-silver project in Arizona, United States.
The Canadian company will use the proceeds of the placement for ongoing exploration and development work, including to add drill rigs and test the recently-discovered Taylor Deeps prospect, the trench vein system and other high priority targets.
The funds will also be used to advance the company’s Taylor Deposit to the feasibility and permitting stage.
Arizona chief executive officer Jim Gowans said South32’s investment represented an endorsement of the Taylor zinc-lead-silver deposit and recognised its world-class stature and additional prospectivity.
“On closing, we will be fully funded to complete our feasibility study and state permitting activities for operations of our patented land,” Gowans said.
“We will also continue exploring the property and will add drill rigs to thoroughly test Taylor Deeps, the trench vein system and other targets to increase the resource.”
South32 can nominate a director for Arizona’s board following the investment, provided it maintains a minimum 12.5 per cent interest in the company.