Arizona Sonoran Announces Closing of Initial Public Offering
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CASA GRANDE, Arizona and TORONTO, November 16, 2021– (COMMERCIAL THREAD) –Arizona Sonoran Copper Company Inc. (TSX: ASCU) (âASCUâ or the âCompanyâ), an emerging private copper developer and short-term producer based in the United States, today announced the successful closing of its initial public offering and its secondary offer (together, the “Offer”). A total of 19,066,518 common shares of ASCU (the âCommon Sharesâ) at a price of C $ 2.45 per common share (the âOffering Priceâ) were issued for total gross proceeds of 46,712 CA $ 969.10, with ASCU and RCF Opportunities Fund LP (the âselling security holderâ) receiving gross proceeds of CA $ 45,000,000.15 and CA $ 1,712,968.95, respectively. ASCU will not receive any proceeds of the secondary offer.
The common shares will begin trading today on the Toronto Stock Exchange under the symbol “ASCU”.
The placement was led by RBC Capital Markets and Haywood Securities Inc. on behalf of a syndicate of underwriters comprising Canaccord Genuity Corp., Cormark Securities Inc., Stifel Nicolaus Canada Inc., Beacon Securities Limited and Paradigm Capital Inc.
In addition, the Company and the selling security holder have granted the underwriters an over-allotment option, exercisable for a period of 30 days from the closing date of the offering, to purchase from the Company and the security holder. seller securities, in equal proportion, up to 2,755,102 additional ordinary shares, representing 15% of the total number of ordinary shares to be sold under the tender offer. If the Over-Allotment Option is exercised in full, the Company will receive 50% of the total gross proceeds of the Over-Allotment Option equivalent to CA $ 3,374,999.95, with the Selling Securityholder receiving the remaining gross proceeds of 3,374,999. , $ 95 CAD.
A final prospectus containing important information about these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. A copy of the final prospectus is available from the above persons and can be found on the SEDAR website at www.sedar.com. The final prospectus indicates that an investment in the Common Shares is speculative and involves a high degree of risk. The activities of the Company are subject to the risks normally encountered in the mining industry. An investment in Common Shares is suitable only for investors who are prepared to risk losing some or all of their investment. For more information, potential investors should read the final prospectus, including the “Risk factors” and the “Statement regarding forward-looking information“.
No securities regulatory authority has approved or disapproved of the contents of this press release. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the âUS Securities Actâ) or any state securities law. Accordingly, common shares may not be offered or sold in the United States unless they are registered under the US Securities Act and applicable state securities laws or under exemptions from the requirements of registration of the US Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of ASCU in any jurisdiction in which such an offer, solicitation or sale would be illegal.
ASCU invites you to visit the updated and expanded Arizona Sonoran website.
The goal of Arizona Sonoran Copper Company (“ASCU”) is to become a mid-term, medium-term copper producer with low operating costs, develop a project that generates strong returns for investors and provide long-term sustainable and responsible operation for the community and all stakeholders. The Company’s primary asset is a 100% interest in the Cactus Project (formerly ASARCO, Sacaton Mine) and is located on private land in an infrastructure rich region of Arizona.
The Cactus project development plan demonstrates the ability to produce approximately 1 billion pounds of copper over an 18-year lifespan. The plan, calculated at a conservative level of US $ 3.35 / lb Cu, is expected to generate approximately US $ 1 billion in free cash flow and NPV8 of 312 million US dollars and an IRR of 33%, all after tax. The Company expects to follow up with a PFS and FS in 2022.
Upcoming events for the company include:
The Precious Metals Conference on November 16 (Registration)
Northern Miner’s Global Mining Symposium on November 17 (Registration)
Presentation of the 6ix webinar on November 23 (Registration)
John Tumazos’ highly independent research talk on December 8 at 2:45 p.m. ET (Registration)
The technical aspects of this press release have been reviewed and verified by Allan Schappert – CPG, who is a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Links in the press release:
Precious Metals Summit: https://www.precioussummit.com/event/2021-precious-metals-summit-europe/
Global Mining Symposium: https://events.northernminer.com/q4-gms-2021/
6ix Webinar: https://my.6ix.com/11ES3VJj
John Tumazos Lecture: https://attendee.gotowebinar.com/register/8530748293750945806
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause ASCU’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking statements. Factors that could affect the result include, among others: future prices and supply of metals; the results of the drilling; failure to raise the necessary funds to incur the necessary expenses for the conservation and advancement of the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, industrial disputes and other risks of the mining industry; political instability, terrorism, insurgency or war; or delays in obtaining government approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals.
Although ASCU has attempted to identify material factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results differ from those anticipated, estimated or anticipated. . The forward-looking statements contained herein are made as of the date of this press release and ASCU disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities. laws.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211116005914/en/
Alison Dwoskin, Director, Investor Relations
George Ogilvie, President, CEO and Director