06:56 AM EDT, 05/06/2024 (MT Newswires) -- Arizona Metals ( AZMCF ) on Monday said it acquired an Arizona state land parcel totaling 40 acres located 400 meters northeast of its Kay Mine property.

The property was acquired through an auction that included the commissioning of independent biological and archaeological studies that demonstrated zero adverse impacts or remediation requirements, the company said.

The property includes the surface and water rights, among other rights and benefits. Arizona Metals ( AZMCF ) also staked unpatented lode and placer claims that secure mineral rights to the land.

The transaction involves total payments of US$366,100 to the state of Arizona as consideration.

"The acquisition of the property is another significant de-risking step in moving the Kay Mine Deposit closer to a production decision," said Arizona Metals ( AZMCF ) CEO Marc Pais. "Including the 71 acres of patented land that host our Kay Mine Deposit, this acquisition will increase our total holdings of private and patented land to 264 acres."

The acquisition also increases the private land suitable for future mine infrastructure by 26%, Pais said.

Arizona Metals ( AZMCF ) lost 3.1% to $2.19 per share on Friday.