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Highlights
Acquisition of 2,123 acres adjacent to the Cactus Project, bringing the total land package to 7,843 acres.
Average purchase price of USD 49,200 per acre, with payments structured through cash, common shares, and deferred vendor loans at 6% annual interest.
Purchased Lands expected to support SX/EW infrastructure, leach pads, waste stockpiles, and provide flexibility for future mineralization development.
Arizona Sonoran Copper Company Inc. (TSX:ASCU) has completed the acquisition of 2,123 acres of private land adjacent to its Cactus Project in Arizona. The Purchased Lands, which include both surface and mineral rights, are expected to provide the additional acreage needed for the Company’s anticipated development and operations plan, including solvent extraction/electrowinning (SX/EW) plant infrastructure, leach pads, and waste rock stockpiles.
The acquisitions were finalized through two separate transactions: the Consortium Land transaction completed on August 29, 2025, and the 80-acre Parcel acquisition closed on June 27, 2025.
Consortium Land Transaction
Through its wholly owned subsidiary, Cactus 110 LLC, ASCU acquired 2,043 acres from a consortium of private corporate landowners. The purchase price was approximately USD 50,000 per acre, with an aggregate initial payment of USD 5 million at closing. This consisted of USD 2 million in cash and 1,549,487 ASCU common shares valued at CAD 2.66 per share, representing USD 3 million.
The balance of the purchase price will be settled under vendor loans carrying a 6% annual interest rate, capitalized and payable on maturity in 2029. Payments of USD 5 million each are scheduled for 2026, 2027, and 2028, with the option for partial payments in ASCU shares. The final deferred balance of approximately USD 82 million plus accrued interest is due in 2029.
ASCU retains unrestricted pre-payment rights with no penalties and expects project financing to be in place as early as Q4 2026, which could be used to pre-pay the vendor loans ahead of maturity.
As part of the arrangement, the consortium land vendors were also granted a 0.5% net smelter returns (NSR) royalty, subject to a right of first refusal held by ASCU.
80-acre Parcel Acquisition
Earlier, on June 27, 2025, ASCU completed the purchase of an additional 80-acre parcel, including full surface and mineral rights, for USD 30,000 per acre. The USD 2.4 million purchase price was split into USD 1.2 million in cash paid at closing and USD 1.2 million under a non-interest-bearing vendor loan, maturing in June 2026. ASCU has the right to pre-pay this loan at any time without penalty.
Consolidated Land Package
Following these acquisitions, ASCU’s Cactus Project now covers 7,843 acres in total. The Purchased Lands are expected to meet the land requirements for the Project Plan while offering operational flexibility to accommodate potential incremental mineralization from future exploration or existing primary sulphide mineralization.
The financing structure—comprised of initial cash, common shares, and deferred vendor loans—was designed to support ASCU’s capital management while securing critical land rights. The agreements also included cross-default provisions and customary terms for Arizona real estate transactions.
