Arizona Sonoran Announces Closing of C$34.5 Million Upsized Bought Deal Offering

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NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

CASA GRANDE, Ariz. & TORONTO, October 09, 2024--(BUSINESS WIRE)--Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) ("ASCU" or the "Company") is pleased to announce that the Company has closed its previously announced public offering of common shares of the Company (the "Common Shares"). The underwriters exercised the full over-allotment option to purchase an additional 15% of the Common Shares in connection with the Offering. The Company issued, on a bought deal basis, 23,805,000 Common Shares, including 3,105,000 Common Shares pursuant to the exercise of the over-allotment option, at a price of C$1.45 per Common Share for aggregate gross proceeds of C$34,517,250 (the "Offering").

The Offering was completed pursuant to an underwriting agreement dated September 27, 2024, entered into between the Company and a syndicate of underwriters co-led by Raymond James Ltd. and Paradigm Capital Inc., as joint bookrunners, and Canaccord Genuity Corp., Eight Capital, Haywood Securities Inc., Stifel Nicolaus Canada Inc., Scotia Capital Inc. and TD Securities Inc.

The Company intends to use the net proceeds of the Offering for exploration and development at the Company’s Cactus Mine Project located in Arizona, and for general working capital and corporate purposes, as described in the Prospectus (as defined below).

The Common Shares were offered by way of a short form prospectus dated October 4, 2024 (the "Prospectus") filed in each of the provinces and territories of Canada, except Quebec, and offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and in those jurisdictions outside of Canada and the United States as agreed to by the Company and the Underwriters, in each case in accordance with all applicable laws and provided that no prospectus, registration or other similar document is required to be filed in those jurisdictions. The Offering remains subject to the final approval of the Toronto Stock Exchange.

The securities have not been, and will not be, registered under the U.S. Securities Act, or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.