Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF)  an emerging US-based copper developer and near-term producer, is pleased to announce that further to its news release dated October 9, 2024, it has closed a non-brokered private placement financing in respect of the exercise by Nuton LLC, a Rio Tinto Venture, of its pre-emptive rights under its Investor Rights Agreement (as defined herein).

ASCU President and CEO, George Ogilvie commented, “The ongoing support from our partner Rio Tinto’s Nuton, is a testament to the quality of the asset. We look forward to advancing workstreams with Nuton to test the expansion of the primary sulphides at Cactus West and the metallurgical leaching program; we are working together towards a highly accretive potential partnership. Tembo has elected to not exercise its preemptive rights and consequently will remain at a 24% ownership of ASCU. We thank the Tembo team for their ongoing support of the Company.”

Pursuant to the terms of the investor rights agreement dated May 13, 2022 and as assigned to Nuton on February 9, 2023, Nuton elected to exercise its pre-emptive rights in respect of the Company’s C$34,517,250 upsized bought deal public offering (see PR dated October 9, 2024) to maintain a 7.2% ownership interest in the Company. Accordingly, Nuton subscribed for 2,151,259 common shares of the Company at a price of C$1.45 per Common Share for aggregate gross proceeds to the Company of C$3,119,326.

The Common Shares issued under the Private Placement are subject to a statutory hold period under applicable Canadian securities laws, expiring four months after closing the transaction. The Private Placement is subject to the final approval of the Toronto Stock Exchange.

To provide sufficient time to complete the pending Integrated Nuton Pre-Feasibility Study, drill program and associated metallurgical work, the parties have agreed to extend dates in the option to joint venture agreement for delivery of the draft Integrated Nuton PFS to December 31, 2025, and its ultimate filing to March 2, 2026. Separately, ASCU has begun workstreams to complete the Company’s standalone Cactus PFS for anticipated release within H2 2025.

Nuton offers a portfolio of proprietary copper leach related technologies and capability developed by Rio Tinto to deliver increased copper recovery from primary sulphide material and leading environmental performance via heap leach and solvent extraction and electrowinning processing.

Neither the Toronto Stock Exchange nor the regulating authority has approved or disproved the information contained in this press release.

About Arizona Sonoran Copper Company

ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper resource and a recent PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower risk copper developer benefitting from a state-led permitting process, in place infrastructure, highways and rail lines at its doorstep and onsite permitted water access. The Company objective is to develop Cactus and become a mid-tier copper producer with low operating costs, that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. 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.