Arizona Metals Corp. Announces Closing Of Bought Deal Financing

TORONTO - Arizona Metals Corp. has completed its previously announced bought deal private placement offering (the “Offering”) of 10,000,000 special warrants (the “Special Warrants”) of the Company at a price of $2.10 per Special Warrant for aggregate gross proceeds of $21,000,000, which includes the exercise in full of the underwriters’ option. The Offering was conducted by a syndicate of underwriters co-led by Stifel GMP and Clarus Securities Inc., and included Cormark Securities Inc., Beacon Securities Limited and Agentis Capital Markets Canada Limited Partnership (the “Underwriters”).

Each Special Warrant shall be deemed to be exercised for one unit in the capital of the Company (each, a “Unit”) without any required action on the part of the holders (and for no additional consideration) on the date which is the earlier of (i) the second business day following the date on which a final receipt is obtained from the Ontario Securities Commission, as principal regulator on behalf of the securities regulatory authorities in each of the Qualifying Jurisdictions, for a (final) short form prospectus qualifying for distribution the Units underlying the Special Warrants (the "Qualification Date"); and (ii) 5:00 p.m. (Toronto time) on August 23, 2021.

Each Unit consists of one (1) common share (“Common Share”) and one-half (0.5) of a common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share of the Company at an exercise price of $3.00 until April 22, 2022.

The Company has agreed to use its commercially reasonable efforts to qualify the Units for distribution in all provinces in Canada, except Québec (the “Qualifying Jurisdictions”) and to obtain the Final Receipt therefor, on or prior to July 2, 2021. In the event the Qualification Date has not occurred on or before July 2, 2021, the exercise price of each Warrant shall be reduced to $2.47 per Common Share (the "Penalty Provision").

In connection with the Offering, the Underwriters received: (i) a cash commission of 6.0% of the gross proceeds of the Offering, excluding gross proceeds from the issuance of Units on a president’s list agreed upon by the Company and the Underwriters (the “President’s List”), for which a commission of 3.0% of such gross proceeds was paid by the Company to the Underwriters; and (ii) 525,442 non-transferable compensation warrants (the “Compensation Warrants”), being equal to 6.0% of the aggregate number of Units sold under the Offering, excluding those Units sold to subscribers on the President’s List, for which the Underwriters were issued Compensation Warrants equaling 3.0% of the aggregate number of Units sold to participants on the President’s List. Each Compensation Warrant is exercisable into one Unit of the Company at a price of $2.10 per Unit until April 22, 2022.

Proceeds from the Offering will be used primarily to fund the 75,000 meter Phase 2 exploration drill program at the Company’s Kay Mine Project and general working capital purposes. The Offering is subject to final approval by the TSX Venture Exchange.