Arizona Sonoran Copper and Nuton terminate option on Cactus Project, Arizona
Arizona Sonoran Copper Company Inc. [TSX: ASCU; OTCQX: ASCUF] reported that ASCU and Nuton LLC, a Rio Tinto Venture, have mutually agreed to the early termination of the Option to Joint Venture (OTJV) on the Cactus Project, Arizona, as well as the termination of Nuton’s investor rights agreement with the company, effective immediately.
George Ogilvie, President and CEO of Arizona Sonoran Copper Company commented, “We appreciate Rio Tinto’s endorsement of the Cactus Project through Nuton’s initial investment and shareholding, together with the constructive joint work under the OTJV to study the potential of deploying Nuton technology at the Cactus Project. It has been a productive relationship, and we look forward to continuing engagement and dialogue with a valued shareholder in Nuton-Rio Tinto.
“We look forward to continuing the successful advancement of our standalone Cactus Project. We anticipate the Feasibility Study and final permit amendments later this year, and a final investment decision is contemplated as early as 4Q 2026.
“Over and above the pending Feasibility Study mine plan which will outline the extraction of oxides and enriched materials, there remains significant upside at the Cactus Project with opportunities to potentially develop the significant primary sulphide Mineral Resource at depth, as disclosed in the Pre-Feasibility Study Technical Report, and in planned further exploration of the ‘Gap Zone’ and the ‘NE Extension’.”
The parties have agreed that the termination of the OTJV and Nuton investor rights agreement with the Company is effective immediately and was completed largely in line with the applicable terms of the OTJV, resulting in payments from the company to Nuton of US$15,000,000 immediately; a deferred payment of US$5,000,000 payable on the earlier of the 1-year anniversary of signing of the termination agreement or consummation of a change of control transaction; and a contingent, deferred cash payment of US$14,957,816 payable only on consummation of a change of control transaction that is publicly announced or subject to a definitive agreement within 24 months of signing of the termination agreement.
In connection with the termination, Nuton agreed to provide the company with all non-interpretative results of completed analyses of Cactus Project ore samples and any completed Phase 2 metallurgical testing performed by or on behalf of Nuton under the OTJV prior to its termination.
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.
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