Arizona Sonoran Copper Company Secures C$5.8M Funding for Cactus Project Development
- Arizona Sonoran Copper Company secured C$5.8 million funding from Hudbay Minerals to advance the Cactus Project development.
- The Cactus Project aims for a Final Investment Decision by Q4 2026, targeting annual production of 86,000 short tons.
- The funding enhances Arizona Sonoran's cash position to US$61.7 million, supporting operational activities and strategic partnerships.
Arizona Sonoran Copper Company Secures Funding for Cactus Project Development
Arizona Sonoran Copper Company Inc. (TSX: ASCU | OTCQX: ASCUF) solidifies its financial footing with the recent closure of a C$5.8 million non-brokered private placement equity financing agreement with Hudbay Minerals Inc. This strategic funding results from Hudbay exercising its pre-emptive rights under their Investor Rights Agreement, enabling them to retain a 9.9% ownership stake in Arizona Sonoran by acquiring 2,907,612 common shares at C$2.00 each. The transaction not only enhances Arizona Sonoran's cash position to approximately US$61.7 million but also demonstrates Hudbay's ongoing commitment and confidence in the company's flagship Cactus Project.
The Cactus Project, a brownfield copper development, is a critical focus for Arizona Sonoran, aiming to achieve a Final Investment Decision (FID) by the fourth quarter of 2026. The project is designed to yield an average annual cathode production of 86,000 short tons over its operational lifespan. The recent funding will facilitate essential activities in 2025 and 2026, including permit amendments, project financing, and progressing towards a pre-feasibility study, which follows a favorable Preliminary Economic Assessment (PEA) conducted in 2024. This robust financial backing positions Arizona Sonoran strongly as it advances its ambitious development timeline for the Cactus Project.
George Ogilvie, President and CEO of Arizona Sonoran Copper, expresses gratitude for Hudbay's support, framing the investment as a testament to the confidence in the company's trajectory and the Cactus Project's potential. As the demand for copper continues to rise, driven by global energy transitions and electric vehicle production, Arizona Sonoran's strategic initiatives place it in a favorable position within the mining industry. The issuance of shares in this private placement is subject to a statutory hold period under Canadian securities laws and is pending final approval from the Toronto Stock Exchange.
In addition to bolstering its financial resources, Arizona Sonoran's collaboration with Hudbay underscores the importance of strategic partnerships in the mining sector. The infusion of capital not only supports the immediate needs of the Cactus Project but also enhances Arizona Sonoran's ability to navigate the complexities of project financing and regulatory approvals in the evolving landscape of copper production. As the company moves forward, it remains committed to sustainable development practices, aligning with industry standards and stakeholder expectations.