Arizona Sonoran Copper Company (ASCU) has announced that RG Royalties, a subsidiary of Royal Gold, has acquired a 2.5% net smelter royalty (NSR) on the Cactus copper project in Arizona.
The purchase, made from Tembo Capital, amounts to $55m. Arizona Sonoran retains the right to buy back 0.5% of this NSR for $7m by 10 July 2025.
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Tembo Capital initially acquired the 2.5% NSR as part of a 3.18% NSR financing with Resource Capital Funds in 2020. The remaining portion is now held by Elemental Altus Royalties.
ASCU president CEO and director George Ogilvie said: “We are pleased to see the royalty move to a top calibre royalty and streaming company, with a history of participating in project financing packages and a positive prior experience with our management team.
“We believe that Royal Gold, as the acquirer, is yet another strong endorsement and recognition of the Cactus Project and its go-forward plan, by a sophisticated mining financier. Our team has dedicated itself to growing the asset to a significant size, securing water, permits, community support and, as reflected in our 2024 PEA [preliminary economic assessment], demonstrating a capital efficient project with robust forecast economics.
“We will continue to de-risk and advance Cactus as we move forward with various technical studies, through pre‑feasibility to definitive feasibility study, to an eventual final investment decision.”
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By GlobalDataArizona Sonoran also has the option to repurchase 0.14% of Elemental Altus’ 0.68% NSR for $1.9m by 10 July 2025, potentially reducing the total NSR to 2.54%. It is also assessing options for the NSR buyback opportunities.
Last month, the company announced a strategic private placement with Hudbay Minerals valued at C$19.9m ($13.83m).
The transaction involves Hudbay subscribing to 11,852,064 common shares at C$1.68 per share.
Prior to this placement, Hudbay held 2,870,800 shares, equating to a 2.12% stake in Arizona Sonoran.
Following the transaction, Hudbay’s ownership will increase to approximately 9.99% of the common shares.
The funds from this placement will support drilling, exploration, technical studies and further development of the Cactus project.
