18:09:41 EST Tue 25 Jan 2022
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Arizona Sonoran Copper company Inc
Symbol ASCU
Shares Issued 69,766,408
Close 2021-11-16 C$ 2.18
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Arizona Sonoran Copper closes $45-million IPO

2021-11-16 09:14 ET - News Release

Mr. George Ogilvie reports


Arizona Sonoran Copper company Inc. (ASCU) has closed its initial public offering and secondary offering (together, the offering). An aggregate of 19,066,518 common shares of ASCU at a price of $2.45 per common share were issued for total gross proceeds $46,712,969.10, with ASCU and RCF Opportunities Fund L.P. receiving gross proceeds of $45,000,000.15 and $1,712,968.95, respectively. ASCU will not receive any proceeds from the secondary offering.

The common shares will commence trading today on the Toronto Stock Exchange under the symbol ASCU.

The offering was led by RBC Capital Markets and Haywood Securities Inc. on behalf of a syndicate of underwriters including Canaccord Genuity Corp., Cormark Securities Inc., Stifel Nicolaus Canada Inc., Beacon Securities Ltd. and Paradigm Capital Inc.

In addition, the company and the selling securityholder have granted the underwriters an overallotment option, exercisable for a period of 30 days from the date of the closing of the offering, to purchase from the company and the selling securityholder, in equal proportion, up to 2,755,102 additional common shares, representing 15 per cent of the total number of common shares to be sold pursuant to the treasury offering. If the overallotment option is exercised in full, the company will receive 50 per cent of the aggregate gross proceeds of the overallotment option equalling $3,374,999.95, with the selling securityholder receiving the remaining gross proceeds of $3,374,999.95.

A final prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The final prospectus notes that an investment in the common shares is speculative and involves a high degree of risk. The company's business is subject to the risks normally encountered in the mining industry. An investment in the common shares is suitable only for those investors who are willing to risk a loss of some or all of their investment.

ASCU welcomes you to visit the updated and expanded Arizona Sonoran website.

Arizona Sonoran Copper company Inc. (ASCU) objective is to become a mid-tier copper producer in the medium term with low operating costs, develop a project generating robust returns for investors and provide a long-term sustainable and responsible operation for the community and all stakeholders. The company's principal asset is a 100-per-cent interest in the Cactus project (former ASARCO, Sacaton mine) and is situated on private land in an infrastructure-rich area of Arizona.

The Cactus project development plan demonstrates the ability to produce approximately one billion pounds of copper over an 18-year mine life. The plan, calculated at a conservative $3.35 (U.S.)/lb Cu, is expected to generate approximately $1-billion (U.S.) in free cash flow and a net present value (NPV8) of $312-million (U.S.) and an IRR of 33 per cent, all after tax. The company expects that it will follow up with a personal finance specialist (PFS) and financial specialist (FS) in 2022.

Upcoming events for the company include:

  • The Precious Metals Conference on Nov. 16.
  • The Northern Miner's Global Mining Symposium on Nov. 17.
  • 6ix Webinar Presentation on Nov. 23.
  • John Tumazos Very Independent Research Conference on Dec. 8 at 2:45 p.m. ET.

Qualified person

Technical aspects of this news release have been reviewed and verified by Allan Schappert CPG, who is a qualified person as defined by National Instrument 43-101 standards of disclosure for mineral projects.

We seek Safe Harbor.

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