Arizona Eagle Mining Corp. (TSXV: AZEM) Secures C$8.59 Million In Upsized Financing For Mccabe Mine And Silver Project Acquisition
Investorideas editorial comment: With silver prices down in the past few days and spot silver trading at $65.14 June 9that market close, junior miners have been hit hard. The long term bullish outlook for gold and silver still seems to be intact as investors participate in over-subscribed funding for the sector.
The 52 week trading range for the stock is 0.9400 - 1.8300, closing at $1.02 June 9th.
Arizona Eagle Mining Corp. (TSXV: AZEM) announced after the market closed June 9ththat it closed its previously announced non-brokered private placement (the "Offering"), as described in the Company's news releases dated May 13, 2026 and May 14, 2026. On June 9, 2026 (the "Closing Date"), the Company issued a total of 7,811,225 units of the Company (each, a "Unit") at a price of C$1.10 per Unit for aggregate gross proceeds to the Company of C$8,592,347.50. Reflecting strong investor demand and support for the Company, the Offering closed at a size significantly greater than the minimum offering size of C$3,000,000 previously announced. Each Unit is comprised of one common share of the Company (each, a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant entitles the holder to acquire one Common Share (each, a "Warrant Share") at an exercise price of C$1.50 per Warrant Share for a period of 36 months from the Closing Date. The Company issued an aggregate of 7,811,225 Common Shares and 3,905,611 Warrants under the Offering.
The Company intends to use the net proceeds from the Offering: (i) to fund exploration and drilling at the past-producing McCabe Mine on the Company's Eagle Project, including the next phase of drilling, geophysics and sampling; (ii) to fund the pending acquisition of the Eagle Silver Project, comprising the Arizona National Mine, the Lookout Mine and the Silver Belt Mine (the "Silver Projects"), as previously announced by the Company on April 20, 2026, and an inaugural 2,500-metre drill program on the Silver Projects; and (iii) for general corporate and working capital purposes. The foregoing allocation of the net proceeds of the Offering represents the Company's current intentions based on present plans and business conditions and may be reallocated by management where sound business reasons make such reallocation prudent or necessary.
The Offering was conducted on a private placement basis pursuant to available exemptions from the prospectus requirements under applicable Canadian securities laws. Units were offered and sold: (i) to purchasers in certain of the provinces of Canada on a private placement basis; (ii) to purchasers in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"); and (iii) to purchasers resident in jurisdictions outside of Canada and the United States, in each case in accordance with all applicable securities laws of such foreign jurisdiction, provided that no prospectus, registration statement or similar document was required to be filed in any such foreign jurisdiction.
In connection with the Offering, the Company paid aggregate cash finder's fees of $398,739 to certain eligible finders and issued an aggregate of 268,380 non-transferable finder's warrants (each, a "Finder's Warrant") to PowerOne Capital Markets Limited, which acted as finder in connection with the Offering. Each Finder's Warrant entitles the holder thereof to purchase one Unit at an exercise price of C$1.10 per Unit until June 9, 2029, with each such Unit comprising one Common Share and one-half of one Warrant (each whole such Warrant exercisable to acquire one Common Share at an exercise price of C$1.50 per Common Share until June 9, 2029).
All securities issued pursuant to the Offering, including the Common Shares, the Warrants and any Warrant Shares issuable on exercise of the Warrants, together with the Finder's Warrants and the Common Shares, Warrants and Warrant Shares issuable upon the exercise thereof, are subject to a hold period of four months and one day from the Closing Date, expiring on October 10, 2026, in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange (the "TSXV"). The Offering remains subject to the receipt of final acceptance from the TSXV.
Warrant AmendmentThe Company also announces that, subject to the acceptance of the TSXV, it intends to amend the exercise price of an aggregate of 1,441,597 common share purchase warrants of the Company (the "Existing Warrants"). The Existing Warrants were originally issued by the Company (then named Core Nickel Corp.) in connection with private placements that closed on October 18, 2024 and October 31, 2024. All Existing Warrant figures and exercise prices set out below are presented on a post-consolidation basis and reflect the consolidation of the Company's common shares on the basis of one (1) post-consolidation share for every 8.5 pre-consolidation shares, completed on March 24, 2026 in connection with the Company's reverse takeover and change of name to Arizona Eagle Mining Corp. As issued, each Existing Warrant is exercisable to purchase one common share of the Company at a price of $2.55 per share, with the Existing Warrants expiring on October 18, 2027 and October 31, 2027, as applicable. No Existing Warrants have been exercised to date. Subject to the acceptance of the TSXV, the exercise price of the Existing Warrants will be reduced to $1.70 per share, being a price that is consistent with the market price of the Company's common shares at the time of the original issuance of the Existing Warrants (on a post-consolidation basis). All other terms of the Existing Warrants, including the expiry dates, will remain unchanged.
Directors and officers of the Company hold in the aggregate 398,235 of the Existing Warrants, representing approximately 27.6% of the Existing Warrants. Pursuant to the policies of the TSXV, where the directors, officers and control persons of an issuer hold, in the aggregate, more than 10% of the warrants being repriced, their warrants may only be repriced on a pro rata basis up to an aggregate maximum of 10% of the total number of warrants being repriced. Accordingly, an aggregate of 144,159 of the Existing Warrants held by insiders will be repriced, allocated on a pro rata basis among them, resulting in the repricing of a total of 1,187,521 Existing Warrants. The balance of the Existing Warrants held by insiders will retain their existing exercise price of $2.55 per share.
The repricing of the Existing Warrants held by insiders is a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation requirement in section 5.5(a), and from the minority approval requirement in section 5.7(1)(a), of MI 61-101, on the basis that neither the fair market value of the Existing Warrants being repriced for insiders, nor the consideration for those Existing Warrants, exceeds 25% of the Company's market capitalization.
None of the Existing Warrants being repriced were issued to any agent, broker or finder as compensation for services. The proposed amendment to the Existing Warrants remains subject to the acceptance of the TSXV.
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