Business
Arizona Sonoran Copper Announces a Strategic Investment by Rio Tinto and Non-Brokered Private Placement for Aggregate Gross Proceeds of up to C$30.5 million
CASA GRANDE, Ariz. & TORONTO / Apr 28, 2022 / Business Wire / Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”), an emergin
About this update from Arizona Sonoran Copper Co., Inc.
[{"type":"text","content":"CASA GRANDE, Ariz. & TORONTO / Apr 28, 2022 / Business Wire / 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 it has entered into a strategic partnership with Rio Tinto focused on Rio Tinto’s Nuton™ venture and a non-brokered private placement for total gross proceeds of up to C$30.5 million. 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. ASCU is conducting a structured non-brokered private placement (the “Offering”) for up to C$30.5 million including Rio Tinto, and Tembo Capital Elim Co-Investment LP (\"Tembo\"), where Rio Tinto will subscribe for 6,400,000 Common Shares (the \"Rio Tinto Subscription\") and Tembo will subscribe for 3,911,916 Common Shares (the \"Tembo Subscription\"). An aggregate of up to approximately 15,231,916 ASCU common shares will be issued (\"Common Shares\") at a price of C$2.00 per Common Share (the \"Subscription Price\") under the Offering. The Subscription Price represents a 3.4% discount to the closing price of Common Shares as at April 27, 2022 and a 1.26% discount to the 5 day volume weighted average price as at close of April 27, 2022. Upon completion of the Offering in full, Rio Tinto is expected to hold 7.4% of the outstanding share capital of the Company, and although participating in the Offering, Tembo will reduce its holding from 37.6% to 35.5% in the Company. The Common Shares issued under the Offering will be subject to a statutory hold period under applicable Canadian securities laws, expiring four months and one day from the date of closing. Cactus is a brownfield copper mine located on private land in western Pinal County, Arizona, that benefits from significant infrastructure including onsite power and water from and ready access to additional infrastructure. George Ogilvie, President and Chief Executive Officer of ASCU commented: \"We are thrilled to introduce Rio Tinto as a key shareholder of ASCU and endorsement of the Project’s potential by a major industry player. We are also thankful for our continued support from current shareholders, including Tembo in this capital raise. This private placement provides the C...