ARIZONA SONORAN COPPER CO INC Stock Price, News & Analysis

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.

Arizona Sonoran Copper Company has closed a non-brokered private placement with Nuton , a Rio Tinto Venture, raising C$3.1 million. The placement involves 2,151,259 common shares at C$1.45 per share, allowing Nuton to maintain its 7.2% ownership stake following ASCU's recent C$34.5 million bought deal offering. The parties extended the deadline for the Integrated Nuton Pre-Feasibility Study to December 31, 2025, with final filing due March 2, 2026. Tembo opted not to exercise its preemptive rights, maintaining its 24% ownership. ASCU plans to release its standalone Cactus PFS in H2 2025.

Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) has appointed M3 Engineering to lead the Cactus Project Pre-Feasibility Study (PFS), expected to be completed in the second half of 2025. The study will focus on upgrading the Parks/Salyer deposit to PFS level, following its rescoping as an open pit mine in the August 2024 Preliminary Economic Assessment (PEA).

Upcoming workstreams include exploration and infill drilling, mine design and scheduling, and technical studies. The company will continue working with Nuton Technologies to develop an integrated PFS. Trade-off studies for optimization include in-pit crushing and conveying, adjusting the Parks/Salyer open pit location, primary sulphide extraction scenarios, and options to smooth cathode production over the mine's life.

Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) has successfully closed its previously announced public offering of common shares. The company issued 23,805,000 Common Shares, including 3,105,000 shares from the full exercise of the over-allotment option, at a price of C$1.45 per share. This resulted in aggregate gross proceeds of C$34,517,250.

The offering was conducted on a bought deal basis, with a syndicate of underwriters co-led by Raymond James and Paradigm Capital Inc. The net proceeds will be used for exploration and development at the Company's Cactus Mine Project in Arizona, as well as for general working capital and corporate purposes.

The Common Shares were offered via a short form prospectus in Canada (except Quebec) and through private placement in the United States. The offering remains subject to final approval from the Toronto Stock Exchange.

Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) has filed a final short form prospectus for its C$30,015,000 bought deal offering. The offering consists of 20,700,000 common shares at C$1.45 per share. An over-allotment option for up to an additional 15% of shares has been granted to the underwriters. The prospectus is available on SEDAR+ and through Raymond James The offering is subject to Toronto Stock Exchange approval.

The underwriting syndicate includes Raymond James and Paradigm Capital Inc. as co-lead underwriters and joint bookrunners, along with Canaccord Genuity Corp., Eight Capital, Haywood Securities Inc., Stifel Nicolaus Canada Inc., Scotia Capital Inc., and TD Securities Inc. The securities are not registered under U.S. securities laws and cannot be offered or sold in the United States without exemption.