Sonoran Desert Copper Corporation Successful Remediation Testing Results on Brazil Copper Slag Tailings

Rhea-AI Summary

Sonoran Desert Copper (SDCU) and Envirotek Remediation Inc. (ETK) have successfully completed initial tests on a sample from a copper slag tailings repository in Brazil. The ETK polymer process was effective in remediating the tailings to meet Canadian Class II Landfill standards. The companies plan to form a special purpose vehicle (SPV) to commercialize the technology. Additionally, SDCU is conducting a private placement offering of up to 10,000,000 units at $0.10 each, aiming to raise $1,000,000 for working capital and project development. The company also granted 1,550,000 stock options to its officers and directors.

Positive

• Successful initial testing of copper slag tailings in Brazil.
• ETK polymer process meets Canadian Class II Landfill standards.
• Formation of an SPV to commercialize the remediation technology.
• Private placement offering targeting $1,000,000 for general working capital and project development.

Negative

• Potential shareholder dilution from the issuance of up to 10,000,000 new units.
• Stock options granted could lead to further dilution.

Vancouver, British Columbia--(Newsfile Corp. - June 27, 2024) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company and its mine tailings solutions partner, Envirotek Remediation Inc. (ETK) have successfully concluded the first testing on a mine tailings sample from a large repository of copper slag tailings in Brazil. The proprietary ETK polymer process was developed to remediate mine tailings to landfill material or aggregates and other industrial end use materials.

Based on this successful test, the two companies will now form a special purpose vehicle (SPV), and a shareholders' agreement will be signed by the Parties for the purpose of commercializing the ETK solutions into the Mining Industry. The results of the ETK Remediation Procedure for the 20 Metal Toxic Characteristic Leaching Procedure (TCLP) analysis are all below the reported detection limit (RDL) or Guideline/Standards (G/S) for Canadian Class II Landfills. (Table 1).

Table 1: TLCP Results

RDL: Reported Detection Limit; G/S: Guideline/Standard (Class II Landfill). Analysis completed by AGAT Laboratories.

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"Our waste treatment sequesters the toxic elements of mining tailings during the polymerization process and transforms the tailings into dry materials that will no longer produce a harmful leachate, as verified by the TCLP analysis of the resulting materials," stated Maria Conejo, CTO for ETK.

PRIVATE PLACEMENT FINANCING OF UNITS AND OPTION GRANT

As previously announced, the Company is offering up to 10,000,000 Units priced at $0.10, for aggregate gross proceeds of up to $1,000,000. Each of the Units will consist of one common share of the Company and one common share purchase warrant, with each warrant being exercisable for an additional common share at an exercise price of $0.25 for 24 months. The Warrants are subject to the right of the Company to accelerate the exercise period if, after the expiration of the 4-month hold, shares of the Company close at or above $0.50 for 10 consecutive trading days. Finders' fees in accordance with TSX Venture Exchange policies may apply to the Financing and all securities issued will be subject to a statutory four-month hold period. Proceeds from the Financing will be used for general working capital, the continuing development of the 4H Copper Project, and advancing further opportunities in the Mining Industry.

Further, the Company has granted 1,550,000 stock options to officers and directors of the Company. The options have an exercise price of 20 cents per share, expire five years from the date of the grant and are subject to TSX Venture Exchange approval.

AGAT LABORATORIES

AGAT Laboratories is a highly specialized Canadian company providing analytical solutions worldwide, including and is accredited under ISO/IEC 17025:2017. AGAT Laboratories services a wide spectrum of industries including Environmental Chemistry, Mining Geochemistry, Petroleum Testing, and Oil Sands Analysis.

ABOUT ENVIROTEK REMEDIATION

Envirotek Remediation Inc. has invested approximately CA$4.0 million into research and development and related expenditures on remediation solutions for industrial waste streams. These proprietary technologies are industrial waste stream remediation and bioleaching solutions. ETK's industrial waste streams remediation processes industrial waste like mine tailings materials through proprietary polymerization into disposable and/or reusable materials. These outputs may be repurposed to aggregates and other industrial end uses. ETK has also developed solutions for the bioleaching of industrial waste streams using microbes. The bacteria are stimulated in the ETK lab to promote more robust growth and utilize the industrial waste streams as a source of food and energy.

QUALIFIED PERSON

The technical information in this news release has been reviewed and approved by Case Lewis, P.Geo., a "Qualified Person" as defined under NI 43-101 Standards of Disclosure for Mineral Projects.

ABOUT SONORAN DESERT COPPER CORPORATION

Sonoran Desert Copper Corporation is focused on securing, developing and monetizing materials assets and technologies to build shareholder value.

On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION

"Brian Leeners"

Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214642

FAQ

What were the results of Sonoran Desert Copper 's remediation testing on copper slag tailings in Brazil?

The remediation testing using ETK's polymer process was successful, with results meeting the Canadian Class II Landfill standards.

What is the purpose of the special purpose vehicle (SPV) formed by SDCU and ETK?

The SPV is being formed to commercialize ETK's remediation technology in the mining industry.

When was the successful remediation testing by SDCU announced?

The successful remediation testing was announced on June 27, 2024.

How much does Sonoran Desert Copper aim to raise through its private placement offering?

Sonoran Desert Copper aims to raise up to $1,000,000 through the offering.

What are the terms of the stock options granted by Sonoran Desert Copper ?

1,550,000 stock options were granted with an exercise price of $0.20 per share, expiring five years from the grant date.