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Arizona Sonoran Copper Announces Royal Gold’s Purchase of Existing NSR on the Cactus Project
CASA GRANDE, Ariz. & TORONTO / Feb 13, 2025 / 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 / Feb 13, 2025 / Business Wire / Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”), an emerging U.S. copper developer, is pleased to report that RG Royalties LLC, a subsidiary of Royal Gold Inc. (RLGD:NASDAQ) has purchased an existing 2.5% net smelter royalty (“NSR”) on a portion of the Cactus Project for cash consideration of US$55 million from Tembo Capital. ASCU has the right to buy back 0.5% of Royal Gold’s aggregate 2.5% NSR for US$7 million, by July 10, 2025. George Ogilvie, ASCU President, CEO and Director commented, “We are pleased to see the royalty move to a top calibre royalty and streaming company, with a history of participating in project financing packages and a positive prior experience with our management team. We believe that Royal Gold, as the acquiror, is yet another strong endorsement and recognition of the Cactus Project and its go-forward plan, by a sophisticated mining financier. Our team has dedicated itself to growing the asset to a significant size, securing water, permits, community support and, as reflected in our 2024 PEA, demonstrating a capital efficient project with robust forecast economics. We will continue to de-risk and advance Cactus as we move forward with various technical studies, through pre‑feasibility to definitive feasibility study, to an eventual final investment decision.” In 2020, a Tembo Capital fund initially purchased the 2.5% NSR, as part of an aggregate 3.18% NSR financing with Resource Capital Funds whose portion is now owned by Elemental Altus Royalties Corp. (“Elemental Altus”). In addition to the 0.5% buy back option on Royal Gold’s NSR, ASCU also has the option to buy back 0.14% of Elemental Altus’ aggregate 0.68% NSR for US$1.9 million by July 10, 2025, which together would reduce the overall combined NSR to 2.54%. The Company is well funded and is currently evaluating its options with respect to both NSR buy back options. Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release. About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com) ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper...