Gunnison Copper Reports Preliminary Results of University of Arizona Economic Impact Study Highlighting Multi-Billion Dollar Benefits
Executive Summary
- Gunnison Copper Corp. disclosed preliminary results of an independent economic‑impact study by the University of Arizona, projecting multi‑billion‑dollar annual output and thousands of jobs from the flagship Gunnison Copper Project.
- The company received an initial conversion notice from Nebari Natural Resources Credit Fund I LP under its Second Amended and Restated Credit Agreement, converting US $500,000 of principal into 2,384,358 common shares at a price of US $0.2097 per share.
- The conversion reduces the outstanding principal on the credit facility and, together with planned proceeds from the sale of previously announced 48C tax credits, could enable full repayment of the Second ARCA.
Key Details
- Economic Impact Study – Direct Annual Effects:
- Revenue: $625 million
- Employment: 524 jobs
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Labor income: $50 million
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Combined Direct, Indirect & Induced Annual Effects (National):
- Output: $1.43 billion
- Jobs: 2,676
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Labor income: $209 million
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Arizona‑level Annual Effects:
- Output: $978 million
- Jobs: 1,739
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Labor income: $129 million
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District 6 (Cochise County) Annual Effects:
- Output: $880 million
- Jobs: 765
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Labor income: $64 million
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Cumulative Life‑of‑Mine Impacts – United States:
- Total output: $14.6 billion
- Job‑years: 53,521
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Labor income: $2.07 billion
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Arizona Cumulative Impacts:
- Output: $10.01 billion
- Job‑years: 34,783
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Labor income: $1.28 billion
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District 6 Cumulative Impacts:
- Output: $9.02 billion
- Job‑years: 15,308
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Labor income: $633 million
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Credit Agreement Conversion (Nebari):
- Amount converted: US $500,000
- Conversion price: US $0.2097 per share (equivalent to C$0.30)
- Shares issued: 2,384,358 common shares
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Nebari may convert additional amounts; resale restrictions limit daily TSX sales to ≤10% of volume and require ≥5% discount to prior‑day close, with cumulative discount caps over any 120‑day period.
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Use of Proceeds:
- Conversion reduces principal on the Second ARCA.
- Anticipated use of proceeds from sale of 48C tax credits to repay the non‑convertible portion of the credit facility, potentially allowing full repayment of the Second ARCA.
Notable Quotes
- “The projected multi‑billion‑dollar impact and thousands of jobs over the life‑of‑mine demonstrate the scale of the opportunity, reinforcing Gunnison's importance to U.S. energy, defense, and manufacturing supply chains.” – Craig Hallworth, Senior Vice President & CFO
- “Eller Partnerships Office was happy to collaborate with Gunnison Copper on this project….” – Anastasiya Ghosh, Associate Dean, Partnerships, Eller College of Management
Materiality Assessment: Material – Positive (the study highlights significant economic benefits and the conversion event materially improves the company’s financing position).