Business
Arizona Sonoran Copper Buys-down 0.64% of the Cactus Project Royalties
CASA GRANDE, Ariz. & TORONTO / Jun 25, 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 / Jun 25, 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 announce that its subsidiaries have exercised their rights to buy-down 0.64% of certain net smelter returns royalties on the Cactus Project (collectively, the “NSRs”; see FIGURE 1, outlined in yellow), ahead of the applicable July 10, 2025 exercise notice expiry dates. Total cash payments of US$8.91 million will be made to RG Royalties LLC, a subsidiary of Royal Gold Inc. (RLGD:NASDAQ) and Elemental Altus Royalties Corp. (ELE:TSXV), to reduce the aggregate percentage of the NSRs from 3.18% to a remaining 2.54% (collectively, the “Buy-downs”). The Buy-downs are expected to close on or about August 12th, 2025. The Buy-downs continue the Company’s royalty reduction strategy as it continues to optimize Project economics in advance of the Pre-Feasibility Study (“PFS”) scheduled for completion later this year. The remaining 2.54% NSR applies to the Cactus West and Cactus East deposits as well as a portion of the Parks/Salyer deposit, outlined in yellow in FIGURE 1. In early Q2 2025, the Company's subsidiary had two historic ASARCO royalties (Nolles/Wagoner; each 5%) vacated by final judicial order. Additionally, in January, ASCU bought down a royalty on the BCE Property, covering a small portion of the Parks/Salyer deposit, from 1.5% to 0.5% for a cash payment of US$500,000 (PR dated JAN 6, 2025), as outlined in blue in FIGURE 1. The southern portion of the Parks/Salyer deposit outlined in white in FIGURE 1, formerly referred to as the MainSpring Property, is not subject to any royalties and comprises the first four years of production in a conceptual mine plan as contemplated by the 2024 Preliminary Economic Assessment (“2024 PEA”; see PR dated AUG 4, 2024 | Technical Report). George Ogilvie, ASCU President, CEO and Director commented, “Upon completion of these Buy-downs, the collective reduction of Cactus Project royalties in 2025 will be a strategic milestone for the Company, set to strengthen Project economics, optimize future cash flows and return copper price upside to our shareholders, as projected in the 2024 PEA. Having just completed the $51.75 million bought deal financing, we now have the necessary runway to advance Cactus,...