/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, May 26, 2016 /CNW/ - Arizona Mining Inc.
(TSX: AZ) ("Arizona Mining" or the "Company") is pleased to announce that it has entered into an agreement with Scotiabank and RBC
Capital Markets, on behalf of a syndicate of underwriters (the "Underwriters"), pursuant to which the Underwriters have agreed to
purchase for their own account or arrange for substituted purchasers to purchase on an underwritten private placement basis
14,000,000 common shares of the Company at a price of $1.29 per common share for aggregate gross
proceeds of $18,060,000 (the "Offering").
Jim Gowans, Arizona Mining's President and CEO commented, "The Company is very pleased to have
arranged this Offering with an elite group of institutions including lead investor JP Morgan Asset Management U.K."
Proceeds from the Offering will be used to fund an ongoing drill campaign to determine the size and extent of the Taylor Deposit
at the Company's Hermosa Project.
It is expected that the closing of the Offering will occur on or about June 9, 2016 subject to
Toronto Stock Exchange approval.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in
the United States. The securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within
the United States unless registered under the U.S. Securities Act and applicable state securities
laws or an exemption from such registration is available.
About Arizona Mining
Arizona Mining Inc. is a Canadian mineral exploration and development company focused on the exploration and development
of its 100% owned Hermosa Project located in Santa Cruz County, Arizona. The Taylor Deposit, a
lead-zinc-silver carbonate replacement deposit, has a resource of 39.4 million tonnes in the Inferred Mineral Resource category
grading 11% zinc equivalent ("ZnEq") utilizing a 6% ZnEq cutoff grade calculated in accordance with NI 43-101 guidelines. The
Taylor Deposit remains open to the north, west and south over land controlled by the Company and will be aggressively drilled to
test the limits of the resource. The Company recently completed metallurgical test work on drill core from the Taylor Deposit that
projects overall recoveries of 92.9% Pb; 85.5% Zn and 91% Ag using industry standard froth flotation processing technology.
The Company's other project on the Hermosa property is the Central Deposit, a silver-manganese manto oxide development
project that has a prefeasibility study completed in December 2013.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other
than statements of historical facts, are forward looking statements including statements with respect to the Company's intentions
for its Hermosa Project in Arizona, USA including, without limitation, performing additional
drilling on the Taylor Deposit. Forward-looking statements are often, but not always, identified by the use of words
such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar
expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Arizona Mining, are
subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions
described in Arizona Mining's management's discussion and analysis for the year ended December 31,
2015 ("MD&A"). Arizona Mining cautions readers that forward-looking statements involve and are subject to known
and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially
from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future
results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive,
political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in
currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and
production costs; future prices of zinc, lead, silver and other minerals; variations of mineral grade or recovery rates; operating
or technical difficulties in connection with exploration, development or mining activities, including the failure of plant,
equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities;
changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain
required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests
over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the
risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled "Risks and
Uncertainties" in the MD&A.
Although Arizona Mining has attempted to identify important risks, uncertainties and other factors that could cause actual
performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the
forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements,
actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated,
forward-looking statements contained herein are as of the date hereof and Arizona Mining disclaims any obligation to update any
forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by
applicable law.
SOURCE Arizona Mining Inc.
