ARIZONA SONORAN COPPER CO INC Stock Price, News & Analysis

Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) has announced that initial Parks/Salyer infill drilling confirms mineralization continuity and extends the high-grade core at the Parks/Salyer copper deposit onto the MainSpring property at the Cactus Project in Arizona.

Key drilling highlights include:

• ECM-299: 391m @ 0.74% CuT of continuous mineralization
• ECM-289: 465m @ 0.74% CuT of continuous mineralization
• ECM-287: 480m @ 0.47% CuT of near continuous mineralization

Three drill rigs are focused on mineral resource infill drilling, while a fourth rig works on both infill drilling at Cactus West and providing data for geotechnical and hydrological programs for the planned Pre-Feasibility Study expected in H2 2025.

Additionally, Doug Bowden will step down as VP Exploration on April 1, 2025, with Christopher White taking over as Manager, Geology to lead the infill drilling programs.

Arizona Sonoran Copper Company (ASCUF) announces that Royal Gold's subsidiary RG Royalties has acquired a 2.5% net smelter royalty (NSR) on part of the Cactus Project from Tembo Capital for US$55 million. ASCU maintains the right to buy back 0.5% of this NSR for US$7 million by July 10, 2025.

The company also holds a buyback option for 0.14% of Elemental Altus' 0.68% NSR for US$1.9 million by July 10, 2025, which could reduce the overall combined NSR to 2.54%. The original NSR arrangement was established in 2020 when Tembo Capital fund purchased the 2.5% NSR as part of a larger 3.18% NSR financing with Resource Capital Funds.

Arizona Sonoran Copper Company (ASCUF) has outlined its achievements for 2024 and strategic plans for 2025 at its Cactus Project. The company's 2024 PEA highlighted a 31-year open pit operation with projected average cathode production of 116,000 short tons annually over the first 20 years.

Key financial metrics from the 2024 PEA include: US$2.03 billion after-tax NPV (8%), 24% IRR, initial capex of US$668M, and US$7.3 billion in unlevered free cash flow, based on US$3.90/lb copper price. The company successfully raised C$59.2 million in financing between October 2024 and January 2025.

The project's mineral resources significantly increased to 7.3 billion pounds of copper in M&I at 0.58% grade and 3.8 billion pounds in Inferred at 0.41% grade. The company completed 174,370 ft of drilling and received strong community support with 87% approval for mine restart.

Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) has adopted a shareholder rights plan effective January 31, 2025. The plan aims to protect shareholders against 'creeping bids' and ensure fair treatment during take-over attempts by preventing accumulation of more than 20% of common shares through exempt purchases.

Under the plan, one right attaches to each outstanding common share. If any party acquires 20% or more of shares without complying with 'Permitted Bid' provisions, other shareholders can purchase additional shares at a 50% market price discount.

The Rights Plan requires shareholder ratification within six months at the 2025 annual meeting planned for June. If not approved, the plan and outstanding rights will terminate. The company's Independent Chair noted this measure aims to protect against opportunistic parties targeting currently undervalued shares, especially as they anticipate positive valuation changes with the upcoming Pre-feasibility Study release for the Cactus Project.

Arizona Sonoran Copper Company (ASCUF) has successfully closed a C$21.6 million private placement, comprising two key investments: a C$20.1 million placement from Hudbay Minerals and a C$1.6 million placement from Nuton , a Rio Tinto Venture.

The transaction involved issuing 12,885,157 common shares at C$1.68 per share. Hudbay acquired 11,955,270 shares to achieve a 9.99% ownership stake, while Nuton maintained its 7.2% equity interest. The proceeds will fund drilling, exploration, and technical studies advancement of the Cactus Project.

The company's main objective for 2025 is to prepare updated technical data for the Parks/Salyer deposit and produce a Pre-Feasibility Study in the second half of the year. The funding ensures ASCU is fully funded for its 2025 work programs.

Arizona Sonoran Copper Company (ASCUF) has announced a strategic private placement with Hudbay Minerals, who will subscribe for 11,852,064 common shares at C$1.68 per share, totaling C$19.9 million (~US$13.8 million). The issue price represents a 15% premium to the 5-day VWAP on TSX as of January 7, 2025.

Following the placement expected to close around January 30, 2025, Hudbay will increase its ownership from 2.12% to 9.99% in ASCU. The proceeds will fund drilling, exploration, technical studies, and advancement of the Cactus copper project in Arizona.

The agreement includes an investor rights agreement granting Hudbay participation rights in future equity financings, observer rights at technical committee meetings, and information access rights. Hudbay agrees to vote in alignment with ASCU's board recommendations for 2025 and 2026 annual meetings.

Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) has completed a buyback of 1% of the Bronco Creek Exploration (BCE) net smelter royalty (NSR) for US$500,000. This strategic move reduces the NSR from 1.5% to 0.5% on the BCE parcel, which is part of the Parks/Salyer deposit within the Cactus Project.

CFO Nick Nikolakakis stated that with a strong balance sheet post-2024 Preliminary Economic Assessment, the company is executing its program to leverage copper price on future production. The finance team aims to deliver copper price and production upside to shareholders through efficient capital allocation, with the royalty buyback showing potential upside value as they advance the Cactus Project.

Arizona Sonoran Copper Company announces positive results from its column leach metallurgical testing program at the Cactus Project, Arizona. Parks/Salyer deposit achieved an average soluble copper extraction rate of 87% over 180 days from 6 oxide and enriched composite columns, while Stockpile columns showed an 86% extraction rate over 100 days.

The company has initiated a $3 million metallurgical program ahead of the H2 2025 Prefeasibility Study, focusing on Parks/Salyer deposit testing. The program includes testing of enriched columns, enriched/oxide composites, and primary sulphide columns using conventional heap leaching methods.

Arizona Sonoran Copper Company has received an amended Industrial Air Permit from Pinal County Air Quality Division for its Cactus Project. The project, based on a 2024 PEA, is expected to produce 116,000 short tons of copper cathode annually over the first 20 years of a 31-year mine life. Local polling shows 87% community support for the project, up from 82.6% in 2021.

The company plans to complete a new PFS in H2 2025, followed by a Definitive Feasibility Study in 2026. The project, situated entirely on private land, requires only state and local permits, with no federal permitting needed. The amended Aquifer Protection permit is currently under review by ADEQ.