Gunnison Copper Announces C$30 Million Bought Deal Public Offering

• Bought deal financing: Gunnison Copper announced a C$30,000,600 bought deal public offering of 71,430,000 common shares at C$0.42 per share, with an over‑allotment option for up to an additional 10,714,500 shares. The underwriter is Canaccord Genuity. Proceeds will advance the Gunnison Copper Project and fund working capital/general corporate purposes. Closing is expected on or about June 3, 2026.
• Arizona Commerce Authority partnership: On the same day, Gunnison received approval under the Qualified Facility Tax Credit (QFTC) Program, providing a non‑dilutive, refundable tax credit to support copper cathode manufacturing and capital investments in Arizona.
• The two releases together signal that the company is raising equity to bridge the funding gap for the pre‑feasibility study (PFS) and operations, while simultaneously securing state‑level financial incentives.

• Financing is dilutive and priced at a discount: The offering price of C$0.42 represents an 8.7 % discount to the last closing price of C$0.46. With ~422.6 million shares outstanding before the deal (based on Greenstone’s 33.88 % stake of 143.2 million shares), the base issuance of 71.43 million shares adds ~17 % to the share count. Including the full over‑allotment, dilution would exceed 19 %. This is a material but not unexpected capital raise given the company’s need to fund a PFS budgeted at US$29.7 million and ongoing G&A.
• No concurrent strategic catalyst: Unlike previous financings, the bought deal does not include a strategic investor, warrant sweeteners, or a premium to market. It is a straightforward cash call at a discount – a structure that often weighs on share price.
• Tax credit partnership is incremental positive: The QFTC approval adds a layer of non‑dilutive funding for future manufacturing expansion. However, the benefits will likely be realized only when the larger Gunnison project reaches construction, so near‑term impact is limited.
• Market context: After the PEA‑driven rally to C$0.66 in January 2026, the stock has steadily declined back to ~C$0.45–0.50. The market appears to be digesting the financing risk, and this offering confirms it. Overall, the news is a routine dilutive event that could pressure the share price toward the offer level, offset only slightly by the tax credit announcement.

Gunnison Copper Corp. is a U.S.‑focused copper development company advancing the 100 %‑owned Gunnison Copper Project in Arizona’s Cochise Mining District. The project is a large, open‑pit, heap‑leach, solvent extraction/electrowinning (SX/EW) operation designed to produce 99.999 % pure copper cathode. Its March 2026 Preliminary Economic Assessment (PEA) outlines impressive metrics:
- NPV₈: ~US$2.0 billion (after‑tax)
- IRR: 23 %
- Payback: 3.9 years
- Average annual production (first 15 years): 174 million pounds
- All‑in sustaining cost: ~US$2.05/lb
- Life‑of‑mine: 21 years, producing 3.2 billion pounds of copper
- Measured & Indicated resource: 846 million tons at 0.33 % Cu (including the satellite Strong & Harris deposit)

The project benefits from existing infrastructure, including a direct rail link and on‑site SX/EW capacity at the Johnson Camp Mine. Johnson Camp is currently in production, fully funded by Nuton LLC (a Rio Tinto venture), with nameplate capacity of 25 million pounds of cathode per year. The property also hosts multiple satellite deposits and potential by‑product revenue from limestone and gravel.