ARIZONA SONORAN COPPER CO INC Stock Price, News & Analysis

Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) has filed a final short form prospectus for a bought deal offering of 22.5 million common shares at C$2.00 per share, raising C$45 million in gross proceeds. The underwriters, led by Scotia Capital Inc. as sole bookrunner, have fully exercised their 15% over-allotment option. The syndicate includes Canaccord Genuity, Paradigm Capital, Raymond James, Haywood Securities, RBC Dominion Securities, and Stifel Nicolaus Canada. The offering is subject to Toronto Stock Exchange approval and excludes U.S. investors as the securities will not be registered under U.S. securities laws.

Arizona Sonoran Copper Company has appointed H&P Advisory Limited as debt financial advisor for its Cactus Project, a copper cathode development project in Arizona. The project financing process will align with ongoing Pre-feasibility Study (PFS) due in H2 2025 and Definitive Feasibility Study (DFS) planned for H2 2026. The Cactus Project, located 45 miles southwest of Phoenix, is a proposed heap leach and SX/EW open pit operation with potential to produce over 100,000 tonnes of copper cathode annually. Following completion of studies and permitting, construction is expected to begin in H2 2026, with first copper production anticipated in late 2028 or 2029 after an 18-24 month construction period. The project's location, projected long mine life, and robust cash flow estimates position it well for financing support.

Arizona Sonoran Copper Company (ASCUF) provided updates on its Pre-feasibility Study (PFS) workstreams for the Cactus Project. The project, based on a 2024 PEA, envisions producing 232 million pounds of copper cathodes annually for the first 20 years through heap leach and SX/EW processing. Key progress includes: 53% completion of site engineering, successful surface miner trials, and 67% completion of the 130,000 ft infill drilling program. Metallurgical testing shows promising results, with enriched columns from Parks/Salyer deposit achieving 89.7% predicted extractable soluble copper, surpassing the PEA's 85% assumption. The company aims to complete the PFS in 2H2025, positioning Cactus as one of few U.S. copper projects capable of near-term production with low capital intensity.

CEO.CA, the leading investor social network for junior resource and venture stocks, has featured Arizona Sonoran (ASCUF) in their 'Inside the Boardroom' series. CEO George Ogilvie discussed the company's strategic roadmap to initiate copper production by 2028 at their brownfield Cactus Project.

The interview, available on CEO.CA's platform and YouTube channel, offers investors direct insights into the company's vision and strategy. CEO.CA, established in 2012 and now a subsidiary of EarthLabs, serves millions of global investors annually through their free financial website and mobile app, facilitating knowledge sharing and discussions about stocks, commodities, and emerging companies.

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.