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Arizona Sonoran Copper Company Inc. (TSX:ASCU,OTC:ASCUF | OTCQX:ASCUF) ("ASCU" or the "Company") an emerging US-based copper developer and near-term producer, is pleased to announce that further to its press release dated December 2, 2025 , it has closed a C$10.4 million non-brokered private placement equity financing with Hudbay Minerals Inc. ("Hudbay") which exercised its pre-emptive rights under its Investor Rights Agreement (as defined herein) (the "Hudbay Placement").
ASCU President and CEO, George Ogilvie commented , "The recent financings have provided ASCU with the incremental capital to expand our key 2026 deliverables to include early development activities. Logistically, we will begin advancing the most productive and/or time sensitive activities outlined in the recent Pre-Feasibility Study, which will be summarized in a 2026 Work Plan press release expected early in the new year. We would like to thank Hudbay for its ongoing support of the Company. The Company now anticipates ending 2025 with just over US$100 million, providing a strong foundation to advance early development activities and project debt financing in 2026."
Pursuant to the terms of the investor rights agreement between the Company and Hudbay dated January 31, 2025 (the "Investor Rights Agreement"), Hudbay elected to exercise its pre-emptive rights in respect of the Company's C$86,250,105 bought deal private placement offering (see PR dated December 2, 2025 ) to maintain a 9.99% ownership interest in the Company. Hudbay subscribed for 3,111,089 common shares of the Company (the "Pre-emptive Right Shares") at a price of C$3.35 per Pre-emptive Right Share for aggregate gross proceeds to the Company of C$10,422,148. Following these recent equity financings, the Company has a cash position of approximately US$100 million, and 208,656,359 common shares outstanding as of market close yesterday.
The Pre-emptive Right Shares issued under the Hudbay Placement are subject to a statutory hold period under applicable Canadian securities laws, expiring four months and one day after closing the transaction. The Hudbay Placement remains subject to the final approval of the Toronto Stock Exchange.
Neither the T oronto Stock Exchange nor the regulating authority has approved or disproved the information contained in this press release.
About Arizona Sonoran Copper Company ( www.arizonasonoran.com | www.cactusmine.com )
ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Cactus Project, on privately held land, contains a large-scale porphyry copper resource and a recent 2025 PFS 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's 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.
Cautionary Statements regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute "forward-looking statements" and " "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "advancing", "after", "anticipated", "become", "believe", "continued", "development", "emerging", "forward", "further", "generational", "long-term", "looking", "move", "near-term", "objective", "ongoing", "outlook", "PEA", "potential", "pre-feasibility", "preliminary", "program", "project", "project", "proposes", "provides", "risk", "study", "subject to", "towards", and "will", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, would, will (or not) be achieved, occur, provide, result or support in the future, or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include those relating to the impacts of and uses of proceeds from the recently completed bought deal equity financing and Hudbay Placement; the ability and timing to receive final approval of the Hudbay Placement from the Toronto Stock Exchange; the Company's proposed activities, plans and objectives for 2026 (including 2026 key deliverables, early development activities and any 2026 Work Plan, the details thereof, and any press release announcing a summary of such plan and the timing thereof, if at all); the Pre-Feasibility Study (or PFS) and results thereof (including activities contemplated thereby); the risk of the Cactus Project; being a near-term producer; proposal of a generational open pit copper mine; project financing and advancement thereof (including timing and outcome); the Company's strategic and other objectives (including developing the Cactus Project and becoming 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. Although the Company believes that such statements are reasonable, there can be no assurance that those forward-looking statements will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the Company's prior press release referenced herein (collectively, the "Referenced PRs"), the technical report titled "NI 43-101 Technical Report Pre-Feasibility Study of the Cactus Mine Project, Pinal County, Casa Grande Arizona" with an effective date of October 20, 2025 and an issue date of November 17, 2025 (the "PFS Technical Report"), the Company's Annual Information Form dated March 27, 2025 (the "AIF"), Management's Discussion and Analysis (together with the accompanying financial statements) for the year ended December 31, 2024 and the quarter(s) already ended and reported in 2025 (collectively, the "2024-25 Financial Disclosure") and the Company's other applicable public disclosure (collectively, "Company Disclosure"), all available on the Company's website at www.arizonasonoran.com and under its issuer profile at www.sedarplus.ca . Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the "Risk Factors" in the AIF, and the risks, uncertainties, contingencies and other factors identified in the Referenced PRs, the PFS Technical Report and the 2024-25 Financial Disclosure. The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the AIF, the 2024-25 Financial Disclosure and other Company Disclosure. Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified) and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements referenced or contained in this press release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the AIF, the Referenced PRs, the PFS Technical Report and the 2024-25 Financial Disclosure.
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For more information
Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com
George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com
