ASCUF Overview

Copper Shortage Excitement: The anticipated copper shortage should excite investors, particularly those focused on long-term material stocks, as the demand for copper is expected to rise while supply diminishes.

Opportunities for Small-Cap Miners: Small-cap copper miners may benefit from the current market conditions, as existing operations are more likely to thrive due to the challenges of establishing new mines.

Taseko Mines Expansion: Taseko Mines is expanding its production in British Columbia and has started copper production at its Florence project in Arizona, aiming for significant output increases in the coming years.

Acquisition Trends: The acquisition of Arizona Sonoran Copper by Hudbay Minerals highlights the trend of growth through acquisition in the mining sector, potentially creating a major hub for copper production in North America.

Cactus Project Overview: Arizona Sonoran Copper Company has filed a Pre-feasibility Study (PFS) for the Cactus Project, outlining a long-life, economically viable copper operation that aims to produce approximately 103,000 tonnes of copper cathode annually, positioning it as the third largest producer in the USA.

Economic Highlights: The PFS indicates strong financial metrics, including an average annual EBITDA of $574 million, a capital intensity of $10,894 per tonne of copper, and a projected after-tax NPV of $2.3 billion at a copper price of $4.25/lb.

Community and Employment Impact: The project is expected to create over 600 direct jobs and provide significant economic benefits to the local Arizona community, while also having opportunities for future mine expansions.

Next Steps and Timeline: The company plans to finalize a Definitive Feasibility Study by the second half of 2026, with a potential investment decision by Q4 2026 and the first copper cathodes targeted for production in 2029.

Offering Details: Arizona Sonoran Copper Company has entered into a bought-deal private placement agreement to sell 22,388,100 common shares at C$3.35 each, aiming for gross proceeds of C$75 million, with an option for underwriters to purchase an additional 3,358,200 shares.

Use of Proceeds: The net proceeds from the offering will be allocated to early development activities at the Cactus Project, along with working capital and general corporate purposes.

Regulatory Approval: The offering is subject to regulatory approvals, including conditional approval from the Toronto Stock Exchange, and is expected to close around December 2, 2025.

Company Objectives: Arizona Sonoran Copper Company aims to become a mid-tier copper producer with low operating costs, focusing on sustainable operations and robust returns for investors through its Cactus and Parks/Salyer Projects.

Cactus Project Overview: Arizona Sonoran Copper Company Inc. announced the results of a Pre-Feasibility Study (PFS) for its Cactus Project, which is expected to produce approximately 103,000 tonnes of copper cathodes annually over the first decade, positioning it as the third largest producer in the USA.

Economic Viability: The PFS indicates strong financial metrics, including an after-tax NPV of $2.3 billion, an internal rate of return (IRR) of 22.8%, and projected average annual EBITDA of $574 million, supporting the project's development and potential profitability.

Community and Job Creation: The project is anticipated to create over 600 direct jobs and contribute positively to the local Arizona economy, with a focus on community engagement and support.

Next Steps and Future Plans: The company plans to finalize a Definitive Feasibility Study and secure project financing by Q4 2026, with the goal of commencing copper cathode production by 2029, while exploring further expansion opportunities and optimizing operations.

Updated Mineral Resource Estimate: Arizona Sonoran Copper Company has released an updated Mineral Resource Estimate (MRE) for its Cactus Project, showing a total of 1,143 million short tons of Measured and Indicated (M&I) resources at a grade of 0.48% Total Copper, which includes a significant conversion of Inferred material to M&I.

Drilling Program Results: The updated MRE reflects the results of a successful infill drilling program that converted 51% of Inferred material to M&I, while also incorporating lower-grade near-surface material, resulting in a 15% decrease in overall M&I grade.

Leachable Copper: Approximately 75% of the M&I copper pounds are leachable, indicating favorable conditions for extraction, with the Parks/Salyer deposit contributing significantly to the leachable resource.

Future Plans: The company is advancing towards a Pre-Feasibility Study (PFS) expected in Q4 2025, with plans for a Definitive Feasibility Study and project financing to support a final investment decision as early as Q4 2026.

Acquisition of Land: Arizona Sonoran Copper Company (ASCU) has acquired 2,123 acres of private land adjacent to its Cactus Project, which includes 2,043 acres from a consortium of landowners and an additional 80-acre parcel. This acquisition is expected to support the development and operations plan for the project, including necessary infrastructure for copper extraction.

Financial Terms and Future Plans: The average purchase price for the land was approximately $49,200 per acre, with a portion of the payment deferred over four years under favorable vendor loans. ASCU anticipates securing project financing by Q4 2026 to facilitate further development and potentially pre-pay the vendor loans.