Arizona Sonoran Copper Company Inc. (TSX: ASCU | OTCQX: ASCUF), a US-based emerging copper developer focused on near-term production, has announced the successful closing of a non-brokered private placement equity financing totalling approximately CA$5.8 million.
Hudbay Minerals Inc., a strategic shareholder, exercised its pre-emptive rights under an existing Investor Rights Agreement to participate in the financing.
This entailed subscribing for 2,907,612 common shares at CA$2.00 per share, maintaining Hudbay’s 9.9 per cent ownership stake in ASCU.
This private placement follows ASCU’s recently announced CA$51.75 million bought deal public offering and brings the company’s cash position to roughly US$61.7 million.
After the completion of the transaction, ASCU now has 177,569,382 common shares outstanding.
The newly issued shares in this placement are subject to a statutory hold period of four months plus one day in accordance with Canadian securities laws.
The Hudbay Placement remains subject to final approval by the Toronto Stock Exchange.
ASCU President and CEO George Ogilvie expressed his gratitude for Hudbay’s ongoing support: “We appreciate Hudbay’s continued support as a strategic shareholder in our brownfield copper project.
“Their pre-emptive rights investment reflects confidence in our progress and outlook as we continue to move toward an anticipated Final Investment Decision as early as Q4 2026.”
Ogilvie highlighted the company’s forward momentum, stating: “With 2025 and 2026 shaping up as pivotal and well-funded years, we are advancing Cactus from the 2024 PEA to pre-feasibility study, and laying the groundwork for necessary permit amendments, project financing, and 86k short ton life of mine average annual cathode production (as projected in the 2024 PEA).
“This year’s work—including trade-off studies, engineering, drilling, metallurgy, and royalty reductions—we believe has significantly de-risked the project.”
He concluded with appreciation for broader shareholder engagement: “We are grateful to all of our other shareholders for their continuing support as we work to further de-risk and unlock the full potential of the Cactus Project.”
This financing round underscores Hudbay’s confidence in ASCU’s operational strategy and the potential of the Cactus copper project as the company advances toward major investment and production milestones.
