Arizona Sonoran closes $10.4M placement with Hudbay

Executive Summary

• Arizona Sonoran Copper Company Inc. (ASCU) closed a non-brokered private placement equity financing with Hudbay Minerals Inc. for gross proceeds of C$10.4 million.
• Hudbay exercised its pre-emptive rights under an investor rights agreement to maintain a 9.99% ownership interest in ASCU.
• The financing brings ASCU's total cash position to approximately $100 million (U.S.), providing capital to expand 2026 deliverables, including early development activities for the Cactus project.

Key Details

• Transaction Structure: Non-brokered private placement equity financing.
• Investor: Hudbay Minerals Inc.
• Gross Proceeds: C$10,422,148 (approx. C$10.4 million).
• Share Price: $3.35 per pre-emptive right share.
• Shares Issued: 3,111,089 common shares.
• Ownership Interest: Hudbay maintained a 9.99% ownership interest in the company.
• Basis for Investment: Exercise of pre-emptive rights under an investor rights agreement dated Jan. 31, 2025, related to a previous $86,250,105 bought deal private placement offering.
• Cash Position: Approximately $100 million (U.S.) following recent equity financings.
• Shares Outstanding: 208,656,359 common shares as of market close yesterday.
• Regulatory Status: Subject to final approval of the Toronto Stock Exchange.
• Hold Period: Pre-emptive right shares are subject to a statutory hold period under Canadian securities laws, expiring four months and one day after closing.
• Use of Proceeds: To expand key 2026 deliverables, including early development activities and advancing time-sensitive activities outlined in the recent prefeasibility study (PFS).

Notable Quotes

• George Ogilvie, President and CEO: "The recent financings have provided ASCU with the incremental capital to expand our key 2026 deliverables to include early development activities. Logistically, we will begin advancing the most productive and/or time sensitive activities outlined in the recent prefeasibility study, which will be summarized in a 2026 work plan press release expected early in the new year. We would like to thank Hudbay for its ongoing support of the company. The company now anticipates ending 2025 with just over $100-million (U.S.), providing a strong foundation to advance early development activities and project debt financing in 2026."