- Global copper miner Hudbay Minerals (TSX:HBM) will invest C$19,911,467 into Arizona Sonoran Copper (TSX:ASCU), a junior miner developing its flagship C$2.77 billion net present value Cactus project in Arizona
- Hudbay’s investment will increase its stake to 9.9 per cent
- Arizona Sonoran is a copper exploration and development company with a 100 per cent interest in the brownfield Cactus project
- Arizona Sonoran Copper stock has given back 12.27 per cent year-over-year and 35 per cent since November 2021
Global copper miner Hudbay Minerals (TSX:HBM) will invest C$19,911,467 into Arizona Sonoran Copper (TSX:ASCU), a junior miner developing its flagship C$2.77 billion net present value Cactus project in Arizona.
Cactus’ 2024 preliminary economic assessment estimates US$7.3 billion in free cash flow through the production of 5,339 million pounds of copper cathode over a 31-year mine life.
Hudbay will pick up 11,852,064 Arizona Sonoran shares priced at C$1.68 by way of a non-brokered private placement, granting it a 9.99 per cent interest – including a 2.12 per cent position held prior to the financing – which it has the right to maintain with further investments. The price per share represents a 15 per cent premium to the 5-day volume weighted average price on the TSX as of January 7, 2025.
According to Thursday’s news release, Hudbay will vote in line with the recommendations of Arizona Sonoran’s board or management on “ordinary course matters” presented at the junior miner’s 2025 and 2026 annual shareholder meetings.
The financing is slated to close on or about January 30, 2025.
Leadership insights
“We are pleased and appreciative to welcome this further endorsement of our project and the go-forward plan by the team at Hudbay,” George Ogilvie, Arizona Sonoran Copper’s president and chief executive officer (CEO), said in a statement. “It is the company’s objective to develop Cactus to be a significant producer of copper cathodes for direct use by industry in the State of Arizona and the larger U.S. supply chain. We welcome Hudbay, a mid-tier base metal producer with decades of base metal successes in the Americas and a strong existing footprint in Arizona, as a larger and increasingly engaged shareholder, able to lend its experience and expertise as we advance and develop Cactus.”
“Cactus is an exciting copper development project in Arizona,” added Peter Kukielski, Hudbay Minerals’ president and CEO. “We see the U.S. as a tier-1 mining jurisdiction and this investment increases our exposure to another high-quality development project in the region as we continue to advance our Copper World project.”
About Arizona Sonoran Copper Company
Arizona Sonoran is a copper exploration and development company with a 100 per cent interest in the brownfield Cactus project. The company intends to become a mid-tier copper producer with low operating costs that could generate robust returns, as well as provide a long-term sustainable and responsible operation for the surrounding community, investors and all stakeholders. Management boasts a long track record of successful project delivery in North America.
Arizona Sonoran Copper stock (TSX:ASCU) last traded at C$1.43 per share. The stock has given back 12.27 per cent year-over-year and 35 per cent since November 2021.
Join the discussion: Find out what everybody’s saying about Hudbay Minerals’ investment in this junior copper stock on the Arizona Sonoran Copper Company Inc. Bullboard and check out Stockhouse’s stock forums and message boards.
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(Top photo: Arizona Sonoran Copper Company)
