Gunnison Copper raises $5.15 million for Arizona project
Gunnison Copper Corp [GCU-TSX, GCUMF-OTCQB, FSE-3XS0] said it has raised $5.15 million from a previously announced non-brokered private placement financing. The company said proceeds will be used to define high value opportunities and commencement of drilling and metallurgical testing activities that will be incorporated into a pre-feasibility study at the Gunnison Copper Project in Arizona.
Under the financing, Gunnison issued17.2 million units, with each unit consisting of one common share and one half of one common share purchase warrant at a price of 30 cents per unit. Each full warrant entitles the holder to acquire one additional common share at a price of 45 cents for 24 months from the closing date of the offering.
On Tuesday, Gunnison shares rose 3.9% or $0.01 to 26.5 cents. The shares trade in a 52-week range of 44 cents and 10 cents.
Gunnison is a multi-asset pure-play copper developer and producer that controls the Cochise Mining District, which contains 12 known deposits within an 8.0 kilometre economic radius in the Southern Arizona Copper Belt.
The Gunnison Copper Project is the company’s flagship asset. It has a measured and indicated resource containing over 831 million tons with a total copper grade of 0.31%. That includes a measured resource of 191.3 million tons at 0.37% copper and an indicated resource of 640.2 million tons at a grade of 0.29% copper. With a preliminary economic assessment already completed, Gunnison Copper is being developed as a conventional operation with open pit mining, heap leach, and SX/EW refinery to produce finished copper cathode on-site with a direct rail link.
In addition, Gunnison’s Johnson Camp Mine in southeast Arizona is under construction with first copper production expected in the third quarter of 2025, with a production capacity of up to 25 million pounds of finished copper cathode annually. The project is fully funded by Nuton LLC, Rio Tinto Group [RIO-NYSE] Venture.
Companies such as McEwen Mining Inc. [MUX-TSX, NYSE] have signed agreements with Rio’s copper leaching technology venture Nuton. The aim is to realize the potential benefits of using Nuton Technologies to produce copper in greater amounts, more rapidly and with less impact on the environment and water resources.
In a press release on March 3, 2025, Gunnison said it had agreed to a non-dilutive funding transaction with Nuton for $3 million in proceeds to Gunnison to be used towards its costs related to a Nuton testing program at the Gunnison Project, as well as the execution of the Tax Partnership Agreement with an agreed-upon allocation of the potential future proceeds from Gunnison and Nuton’s award of 48C tax credits from the U.S. government.
“The agreement announced today with Nuton provides Gunnison $3 million in non-dilutive financing and the possibility of additional funds during 2025 as a result of monetizing the tax credits awarded to Gunnison and Nuton that Gunnison estimates could be up to $8.0 million,’’ said Gunnison President and CEO Stephen Twyerould in the March 3 press release.