Management announced yesterday a non-brokered private placement of 3,333,333 units at C$0.30, for gross proceeds of C$1M.

This is a good deal for anyone who’s a qualified investor and wants to jump in, since it’s priced below market (and is why the stock is selling off) and also comes with a full warrant, good for two years at $0.45.

A few things to be aware of if you’re considering the private placement or even buying in the open market…

• I’m told everyone in management is participating in this placement, including $100,000 each from CEO Mike Stark and VP-Exploration Greg Hahn, and other management at lower amounts. They obviously believe there’s something good ahead, and it’s very encouraging to see management have a significant amount of their own capital at stake.
• Mike says a whopping 91% of these funds will go “into the ground,” in other words drilling. You will be hard-pressed to find a junior with a percentage that high.
• The company is permitted for 30 drill holes, all of which have already been identified. Drills could be mobilized as early as next week. Channel sampling at these targets returned very strong gold grades.

If you want to participate, email Mike at mike.stark@arizonagoldsilver.com or call him directly at (604) 833-4278. I would not be surprised to see this placement oversubscribed.

If you’re buying in the open market, I’ll point out the stock is down 27% YTD and near its 52-week low, thus making for a strong entry point. I participated in an earlier private placement so am already overweight the stock. If you own it, I recommend holding on to ‘er.

Courtesy of the Gold Advisor