Rio Tinto’s Nuton and Arizona Sonoran Copper Sign $33 Million JV Option on Cactus Mine Project
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Arizona Sonoran Copper Company (ASCU) has entered into an option to joint venture agreement with Nuton LLC, a wholly-owned subsidiary of Rio Tinto, to establish a strategic alliance for deployment of the Nuton technologies at its Cactus Mine and the Parks/Salyer Project in Arizona.
“We are delighted to announce this strategic joint venture transaction with Nuton. We welcome the expertise and financial support as we expand testing of Nuton’s heap leaching technologies, while concurrently advancing ASCU’s projects. Nuton’s column test results have demonstrated continued improvements in extraction rates from both the primary and enriched mineral resources, resulting in potentially more efficient operations,” said George Ogilvie, president and CEO of ASCU.
“We look forward to advancing into phase 2 testing, which includes an expanded understanding of the Nuton technologies’ economic benefits within a fully-integrated pre-feasibility study, anticipated by the end of 2024,” added Ogilvie.
“The proposed heap leach and SXEW flowsheet utilizing Nuton is intended to build upon the strength of our standalone base case, utilizing the same infrastructure proving economies of scale. Nuton has indicated the potential to significantly increase copper cathode output from our current 45-50 ktpa target which could materially enhance project economics,” concluded Ogilvie.
“We are pleased to be advancing our strategic partnership with ASCU. Successful deployment of Nuton Technologies at Cactus and Park/Salyer has the potential to materially enhance the economic and environmental performance of the projects,” said Adam Burley, CEO of Nuton.
The option to joint venture agreement with Nuton and two of ASCU’s wholly-owned subsidiaries has granted Nuton the exclusive right and option to acquire between a 35 percent to 40 percent interest in the company’s Cactus Project.
The option agreement provides for total funding of up to $33 million in cash, comprised of the following:
• $10 million payable by Nuton to ASUSA at signing of the option agreement
• Up to $11 million available to be drawn by ASUSA in the form of a pre-payment towards the option exercise
price to be used for certain land payments
• Up to $12 million payable to ASCU for funding costs associated with continued Nuton test work required to
produce the integrated Nuton case PFS
The parties have outlined a work program for the Nuton case to commence in Q1 2024, targeting delivery of the integrated Nuton case PFS, by December 31, 2024. ASCU will continue to act as operator of the Cactus Project. ASCU and Nuton will form a steering committee, comprised of two members selected by ASCU and two members selected by Nuton, to determine, among other things, the detailed execution scope of the integrated Nuton case PFS. Nuton will have the right to nominate one individual to ASCU’s technical & sustainability committee.
Arizona Sonoran Copper Company’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus and Parks/Salyer Projects 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 which is situated on private land in an infrastructure-rich area of Arizona. Contiguous to the Cactus Project is the company’s 100 percent owned Parks/Salyer deposit that could allow for a phased expansion of the Cactus Mine once it becomes a producing asset. 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.
Nuton, a Rio Tinto venture, is deploying nature-based bioleach technologies set to unlock copper resources while pursuing a positive impact ambition. Together with its partners, they aspire to transform the industry and redefine the future and legacy of mining.
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