Shares of Arizona Silver Exploration Inc. (TSX-Venture:AZS) (OTC:AZASF) have battled back in recent weeks after bottoming in late-December around $0.10.
The move higher in share price is not surprising given the encouraging press releases being disseminated of late. In a recent announcement, the Company closed its private placement, injecting some capital which will no doubt be used to deploy resources to its properties. The placement was completed early in the New Year, at a price of $0.10 per unit, raising total gross proceeds of $682,762.
Chief among the Company’s properties is the Philadelphia project, a high-grade gold and silver vein target located in Mohave County, northwestern Arizona.
Core drilling at the property last October intersected high grades in the last hole of the 2019 program, a continuation of the high-grade vein intercept in RC hole PRC19-2 completed in May.
Going back to 2020, just a few days ago to be specific, the Company entered into a purchase and sale agreement covering the 11 unpatented mining claims currently covered under a lease with option to purchase agreement on the Philadelphia project.
The Purchase and Sale Agreement supersedes the lease and option agreement on the property entered into last February 2019. The terms of the purchase and sale agreement calls for a cash payment of $20,000 U.S. and issuance of 250,000 common shares of Arizona Silver to own the property 100% outright with no further annual lease payments or buyout expenditures.
As mentioned off the top, recent corporate developments appear to be perking investor interest. Shares of Canadian-listed AZS closed at $0.175 on Thursday, up 75% from those early-December lows we mentioned off the top.
With Thursday’s trading, the AZS stock chart is showing major support at $0.16 - $0.165. On the way up, resistance looks to be at $0.18, $0.20 and $0.23. With the big resistance area to watch going forward being $0.18, a move above that key area could offer up some nice potential upside, especially if fundamental developments can continue to impress.
