-
The sale and purchase agreement for Mainspring Properties, a 523-acre privately owned parcel. Adjacent to our Parks/Saylor Project.
-
The MainSpring site borders the highway to the south, the access road to the Cactus mine to the east, and the Parks/Salyer project to the north.
-
Provides operational flexibility regarding infrastructure and site requirements for the rescoped PFS scheduled for Q4 2023 or early 2024. This includes potential land requirements that are considered in the Nuton scenario.
Casa Grande, Toronto, Arizona, February 28, 2023–(business wire)–Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”) is an emerging U.S.-based copper developer and immediate producer that has entered into a Purchase and Sale Agreement (“PSA”) We will announce that “) With respect to the MainSpring Property, 523 acres of private land immediately south of the Park/Salyer Project and east of the access road to the mine (the “MainSpring Property”). The total land area of the Cactus and Parks/Salyer projects combined is expected to range from 4,845 to 5,368 acres.The result is significant operational flexibility with respect to rescoped Pre-Feasibility Study (“PFS”) planning requirements (see Figure 1).
This press release features multimedia. View the full release here. https://www.businesswire.com/news/home/20230228006338/en/
ASCU site boundary (Photo: Business Wire)
George Ogilvie, President and Chief Executive Officer of Arizona Sonoran, said:“As we continue to move forward into the design, engineering, and infrastructure layout phases of our study, MainSpring Properties will provide companies with a strategic alternative to plan and optimize their rescoped PFS. The additional land will allow for optimization within the production scenario being explored by Parks/Salyer, and further flexibility in the potential Nuton scenario to create the highest value proposition for shareholders. can be considered.”
Key PSA Terms
Cactus 110 LLC, an ASCU Group Company, has entered into a sale and purchase agreement for a specific parcel of approximately 523 acres of property located in Pinal County. The total purchase price of the property is US$14 million, paid as follows:
-
Payment of a non-refundable security deposit of USD 1,000,000 to an escrow account upon signing the contract.
-
US$2,000,000 to be paid into escrow by the expiry of the PSA due diligence deadline, which is five months (subject to an extension of one month at ASCU’s option).
-
Payment of US$5,000,000 over one year from the effective date (date of signature of PSA) (“Closing Date”). Ownership then transferred to Cactus 110 LLC.
-
$6 million payable within one year from the closing date, with accrued interest at 6% per annum, secured by a promissory note and deed of trust of the subject property. The promissory note can be redeemed at any time before maturity, after which the trust deed is released.
The contract also contains customary terms that apply to transactions of a similar nature.
The MainSpring property marks upward exploration adjacent to the Parks/Salyer project and may be the subject of the Company’s future program of work. However, in the medium term, we will continue to focus on the mine planning and engineering required for future PFS that incorporates our existing Parks/Salyer and Cactus resource bases.
Permitting activities are directed at the state and county levels in a process similar to private property ownership.
Technical aspects of this news release have been reviewed and verified by Allan Schappert – CPG #11758, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Link: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
Neither TSX nor any regulatory agency has endorsed or disproved the information contained in this press release.
About Arizona Sonoran Copper Company (www.arizonasonoran.com | | www.cactusmine.com)
ASCU’s objective is to become a medium-sized copper producer with low operating costs and a Cactus and To develop the Parks/Salyer project. Our primary asset is his 100% interest in the Cactus Project (formerly ASARCO, Sakaton Mine) on private land in an infrastructure rich area of Arizona. Adjacent to the Cactus Project is the Parkes/Sarria deposit, which is 100% owned by the company, with the potential for gradual expansion once the Cactus mine becomes a production asset. The company is led by an executive management team and board with a long track record of successful projects in North America, complemented by global capital markets expertise.
Forward-Looking Statements
Forward-looking statements involve known and unknown risks, uncertainties and other factors and ASCU’s actual results, performance or achievements may not be expressed or implied by the forward-looking statements. Future results, performance or achievements may differ materially. Factors that can affect the results include, among others: Future prices and supply of metals. Consequences of excavation; failure to raise the necessary funds to cover the expenses necessary to hold and advance the property; environmental responsibility (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; mining accidents, industrial disputes and other risks; Political instability, terrorism, rebellion or war. or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals.
Although ASCU has attempted to identify important factors that could cause its actual actions, events or results to differ materially from those set forth in the forward-looking statements, ASCU does not anticipate actions, events or results. , estimated, or there may be other factors that cause it to differ from that intended. The forward-looking statements contained herein are made as of the date of this news release and ASCU may not make forward-looking statements as a result of new information, future events, results or otherwise. shall not be obliged to update the law.
View source version at businesswire.com: https://www.businesswire.com/news/home/20230228006338/en/
contact address
For more information:
Alison Dwoskin, Director, IR
647-233-4348
adwoskin@arizonasonoran.com
George Ogilvy, President, CEO, Director
416-723-0458
gogilvie@arizonasonoran.com
