Published: May 31, 2022 |

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Arizona Sonoran Copper Company (ASCU) has entered into a strategic partnership with Rio Tinto focused on Rio Tinto’s Nuton™ venture and a non-brokered private placement for total gross proceeds of up to C$30.5 million.

Nuton™ offers a portfolio of proprietary copper leach related technologies and capability developed by Rio Tinto to deliver increased copper recovery and leading environmental performance.

ASCU is conducting a structured non-brokered private placement for up to C$30.5 million including Rio Tinto and Tembo Capital Elim Co-Investment.

Upon completion of the offering in full, Rio Tinto is expected to hold 7.4 percent of the outstanding share capital of the company, and although participating in the offering, Tembo will reduce its holding from 37.6 percent to 35.5 percent in the company.

The common shares issued under the offering will be subject to a statutory hold period under applicable Canadian securities laws, expiring four months and one day from the date of closing.

Cactus Mine Project is a brownfield copper mine located on private land in western Pinal County, Arizona, that benefits from significant infrastructure including onsite power and water from and ready access to additional infrastructure.

“We are thrilled to introduce Rio Tinto as a key shareholder of ASCU and endorsement of the project’s potential by a major industry player. We are also thankful for our continued support from current shareholders, including Tembo in this capital raise,” said George Ogilvie, president and chief executive officer of ASCU.

“This private placement provides the company with significantly more capital to explore opportunities to deliver scale to the main project, by way of intensive exploration at Parks/Salyer (P/S) and metallurgical testing of the primary chalcopyrite material at Cactus, which is not currently in the preliminary economic assessment mine plan,” added Ogilvie.

“This investment will allow Rio Tinto to work with ASCU to assess the potential for deploying our innovative Nuton™ copper leaching technologies at Cactus. Nuton™ provides the opportunity to unlock additional copper and deliver environmental benefits including a low carbon footprint and reduced waste,” said Clayton Walker, chief operating officer of Rio Tinto Copper.

USE OF PROCEEDS AND STRATEGIC PARTNERSHIP FOCUSED ON RIO TINTO’S NUTON™ TECHNOLOGIES

The company will use the net proceeds from the offering to fund additional drilling, exploration, project, and study work related to the company’s Cactus Mine Project, and for general corporate purposes.

The strategic partnership agreed between Rio Tinto and the company is focused on Rio Tinto’s Nuton™ technologies as reflected in an investor rights agreement effective as of closing under which they will work collaboratively to continue ongoing viability testing and studies of the technologies, including the evaluation of deployment at the Cactus Mine Project. The aim of the partnership is to unlock the value of primary, chalcopyrite-dominated, sulphide material via deployment of Rio Tinto’s Nuton™ technologies and further add to the long-term, large-scale future profile of the project. The Rio Tinto IRA also provides for evaluation by Rio Tinto and the company of other areas of potential strategic collaboration.

The Rio Tinto IRA in addition contains the possibility of a limited-time exclusivity in favor of Rio Tinto concerning the company’s involvement with specified copper heap-leach related technologies under certain conditions. The Rio Tinto IRA does not contain any other exclusivity opportunities.

The offering is scheduled to close on or about May 13, 2022 and may close in one or more tranches, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX and the securities regulatory authorities.

About Arizona Sonoran Copper Company
ASCU’s objective is to become a mid-tier copper producer with low operating costs, develop the Cactus Project that could generate 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 percent interest in the Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. The company is led by an executive management team and board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise.

To stop by Arizona Sonoran’s website, CLICK HERE

About Rio Tinto
Rio Tinto is a mining and metals company operating in 35 countries around the world that produces the materials essential to human progress. It aims to help pioneer a more sustainable future, from partnering in the development of technology that can make the aluminum smelting process entirely free of direct GHG emissions, to providing the world with the materials it needs — such as copper and titanium — to build a new low-carbon economy and products like electric vehicles and smartphones.

To stop by Rio Tinto’s website, CLICK HERE

About Nuton™
Nuton™ is an innovative new venture that aims to help grow Rio Tinto’s copper business. At the core of Nuton™ is a portfolio of proprietary copper leach related technologies and capability – a product of almost 30 years of research and development. The Nuton™ technology offers the potential to economically unlock known low-grade copper sulphide resources, copper bearing waste and tailings, and achieve higher copper recoveries on oxide and transitional material, allowing for a significantly increased copper production outcome. One of the key differentiators of Nuton™ is the potential to deliver leading environmental performance, including more efficient water usage, lower carbon emissions, and the ability to reclaim mine sites by reprocessing mine waste.

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