Arizona Sonoran Copper Company has successfully closed a public offering, raising C$51.75m ($37.6m) through the issuance of 25,875,000 common shares.
This includes 3.3 million shares from the full exercise of the over-allotment option by underwriters. Priced at C$2 per share, the offering is a strategic move to secure financial stability for the company's upcoming projects.
The offering was conducted under an underwriting agreement dated 6 June 2025, with a syndicate led by Scotia Capital acting as the sole bookrunner.
The consortium also included Canaccord Genuity, Haywood Securities, Paradigm Capital, Raymond James, RBC Dominion Securities and Stifel Nicolaus Canada.
The net proceeds from the offering are earmarked for several key initiatives. They will primarily enable the company to exercise buy-down rights on net smelter return (NSR) royalties for the Cactus Project, fund potential land acquisitions, complete essential technical and engineering studies, and provide working capital and general corporate resources.
The company expects the newly acquired funds to sustain operations up to the final investment decision (FID) for the Cactus Project, which is expected in the fourth quarter of 2026 (Q4 2026).
The common shares were made available through a short form prospectus in Canada (excluding Quebec) and were offered in the US and other jurisdictions on a private placement basis, in compliance with all applicable laws.
Final approval of the offering from the Toronto Stock Exchange is pending.
In January this year, Arizona Sonoran Copper announced a strategic private placement worth C$19.9m with Hudbay Minerals, which will see Hudbay increase its stake in Arizona Sonoran by subscribing for 11.8 million common shares at C$1.68 each.
