Arizona Sonoran Copper Announces Public Offering of $25 Million in Common Stock

TORONTO, Sept. 23, 2024 (GLOBE NEWSWIRE) — Arizona Sonoran Copper Company Inc. (“Arizona Sonoran” or the “Company”) (TSX:ASCU) is pleased to announce that it has entered into an agreement with Raymond James Ltd. and Paradigm Capital Inc., as joint lead underwriters and joint underwriters, on behalf of a consortium of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “purchase” basis, 17,241,400 common shares (the “Common Shares”) of the Company at a price of CAD$1.45 per Common Share (the “Issue Price”) for aggregate gross proceeds to the Company of approximately CAD$25 million (the “Offering”).

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to 15% of an additional Common Shares at the Issue Price, which may be exercised in whole or in part at any time during the period ending 30 days after the closing of the Offering.

The net proceeds from the Offering will be used to explore and develop the Company’s Cactus Mine project located in Arizona and for general working capital and corporate purposes.

The Offering is expected to close on or about October 9, 2024 and is subject to certain conditions, including, without limitation, the receipt of all necessary consents, including the consent of the Toronto Stock Exchange.

The Common Shares will be offered by means of a short form prospectus to be filed in each of the provinces and territories of Canada, except Quebec, and may be offered in the United States in a private placement pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and in such jurisdictions outside Canada and the United States as the Company and the Underwriters agree to, in each case in compliance with all applicable laws and provided that no prospectus, registration statement or other similar document shall be required to be filed in such jurisdictions.

The securities have not been and will not be registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Arizona Sonoran Copper Company

ASCU’s goal is to become a mid-market copper producer with low operating costs and to develop the Cactus and Parks/Salyer projects, which can generate solid returns for investors and provide long-term, sustainable and responsible operations for the community and all stakeholders. The company’s principal asset is a 100% interest in the Cactus project (formerly ASARCO, Sacaton mine), which is located on private land in an infrastructure-rich area of ​​Arizona. Adjacent to the Cactus project is the company’s 100% owned Parks/Salyer deposit, which could enable phased expansion of the Cactus mine once it becomes a producing asset. The company is led by a management team and board of directors with a long track record of successfully implementing projects in North America, complemented by global capital markets experience.

More information:
Alison Dwoskin, Investor Relations Director
647-233-4348
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George Ogilvie, Chairman, CEO and Director
416-723-0458
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Forecast statements

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect results include, but are not limited to: future metal prices and supplies; drilling results; inability to obtain cash necessary to pay expenses required to maintain and develop the property; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labor disputes and other risks associated with the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals.

Although ASCU has attempted to identify important 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 to differ from those anticipated, estimated or intended. The forward-looking statements contained herein are made as of the date of this press release, and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.