Cashed Up...Increase in Float...Go George Go..
Placement for C$35 million
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Casa Grande, AZ and Toronto, ON, May 16, 2022 – Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”), an emerging US-based copper developer and near-term producer, is pleased to announce that further to its press releases dated April 28, 2022, it has closed a non-brokered private placement of 17,500,000 Common Shares at a subscription price per share of C$2.00, for gross proceeds of C$35 million (the “Offering”).
George Ogilvie, President and Chief Executive Officer of ASCU commented, "We are thrilled to be starting our strategic collaboration with one of the largest global diversified metals miners, which speaks volumes about the merits of the Cactus Mine and our management team. Alongside Rio Tinto, we are thankful for the continued support of our dedicated institutional shareholders. With a robust treasury, ASCU is well-financed and debt-free to build on the underlying fundamentals of the Company. Within the short term, the team is committed to delivering technical studies ahead of a construction decision at Cactus, and a maiden mineral resource for our Parks/Salyer Property.”
Under the Offering, Rio Tinto Technology Holdings Corporation (“Rio Tinto”), and Tembo Capital Elim Co-Investment LP ("Tembo"), subscribed for 6,400,000 Common Shares and 3,911,916 Common Shares, respectively. Other institutional investors subscribed for 7,188,084 Common Shares. Following the Offering, Rio Tinto holds 7.2% of the outstanding share capital of the Company, and although participating in the Offering, Tembo's holdings have been reduced from 37.6% to 34.6% in the Company.
In connection with the Offering, the Company has also entered into a strategic collaboration with Rio Tinto focused on Rio Tinto’s Nuton™ venture. Nuton™ offers a portfolio of proprietary copper leach related technologies and capability developed by Rio Tinto to deliver increased copper recovery and leading environmental performance. The Company also proposes to collaborate with Rio Tinto on other technical and operational aspects of the Company’s Cactus Mine Project (the “Project”).
The Company intends to use the net proceeds from the Offering as previously outlined to fund additional drilling, exploration, project and study work related to the Project and Parks/Salyer, and for general corporate purposes.
The Common Shares issued under the Offering are subject to a statutory hold period under applicable Canadian securities laws which will expire on September 14, 2022. The Offering is subject to final approval of the TSX.
All the Best!
Digger0144
P.S. I have not taken a position yet...might go lower..not much though.