Arizona Sonoran Copper

Financials:

Primary ticker: TSX:ASCU
Stage of development: Exploration, Development
Primary minerals: Copper
Project to promote: Cactus Mine Project
Project location: USA
Website: www.arizonasonoran.com
Corporate presentation: Click here
Corporate video: Click here

ASCU‘s objective is to become a mid-tier copper producer in the near term with low operating costs, develop the Cactus Project that could generate robust returns for investors, and provide a long term sustainable and responsible operation for the community and all stakeholders. The Company’s principal asset is a 100% interest in the Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise.

Cash: USD30M
Debt: USD1M

Major shareholders:
Tembo – 38%
RCF – 5.6%
George Ogilvie – 1.6%
Top 4 Inst. Shareholders 9.8%
AGF – 1.2%
Management ownership – 8.1%

Management Profile

George Ogilvie – President and CEO

George Ogilvie, has over 30 years of management, operating and technical experience in the mining industry. Mr. Ogilvie was until most recently the President & CEO of Battle North, a position he was appointed to, in 2016 whilst the company was under financial insolvency & restructuring proceedings. During his 5 year tenure at Battle North, Mr. Ogilvie and his team successfully completed a turnaround of the company resulting in an increase in the resource base from 400 k ounces Au to approximately 1.3 million oz Au, completion of a positive bulk mining reconciliation program resulting in de-risking of the project, delivery of a preliminary economic assessment and follow on feasibility study in relation to the project with a post-tax IRR of 50% and completion debt and equity financing of over C$100m associated with project construction. Battle North was acquired by Evolution Mining Limited in May 2021 at a 45% premium to the prevailing spot price. Prior to this, Mr. Ogilvie was the CEO of Kirkland Lake Gold Inc. where he and his team implemented a turnaround strategy which included, amongst other items, improving operations at the Macassa Mine and the acquisition of St. Andrew Goldfields, resulting in significant returns for shareholders. Previously, Mr. Ogilvie was the CEO of Rambler Metals and Mining PLC, where he and his team guided the evolution of the company from grassroots exploration to a profitable junior producer. Mr. Ogilvie began his mining career in 1989 with AngloGold in South Africa and he subsequently held other roles at the Ruttan Mine in Northern Manitoba for HudBay Minerals Inc., the McCreedy West Mine and also as Area Manager for Dynatec Corporation. Currently, Mr. Ogilvie also serves on the board of Rupert Resources Ltd.

Mr. Ogilvie received his B.Sc. (Hons.) in Mining and Petroleum Engineering from Strathclyde University in Glasgow, Scotland. He is a Professional Engineer and also holds his Mine Managers Certificate (South Africa).

What is your rationale for taking part 121 Mining Investment?

ASCU seeking to increase its shareholding in the USA, where its projects are located. ASCU is a relatively new listing on the TSX with strong capital markets support, and seeking to gain additional exposure within a local investing market with a reputable conference.

We will have multiple developments over the year – exciting exploration results at Parks/Salyer while the development of the Cactus Mine advances (drilling, permitting, technical studies)

What recent news would you like to highlight to investors attending?

January 18, 2022: Arizona Sonoran Accelerates Development Work at Cactus in 2022
December 7, 2021: Arizona Sonoran Drills 1.43% Cu TSol over 80.9 m at Cactus
November 22, 2021: Arizona Sonoran Begins Exploration Drilling at Parks/Salyer

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Drilling (infill and exploration) at Cactus and Parks/Salyer
Advance permitting
Issue an initial GHG life cycle assessment at Cactus and begin the development of an action plan

6 Months:

Drilling (infill and exploration) at Cactus and Parks/Salyer
Complete the PFS at Cactus
Begin BFS at Cactus
Complete the Aquifer Protection Permit for the Integrated Cactus Project

12 Months:

Complete maiden Mineral Resource Estimate for Parks/Salyer
Nearly complete the BFS
Advance Project Financing

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Permitting is a risk, although we are on private land with no federal nexus. Because we are on private land, we work with the State and County level regulatory bodies which dictate a streamlined process. We are focused on being good partners at the local level, with the social license to operate.

Inflation is a risk for all companies. With a minimal CAPEX ($124 million), we see inflation as an immaterial impact to the operations potential to finance.

What do you think makes your company such a compelling investment?

Based in a top tier accessible location, ASCU is advancing a low-risk brownfield copper project with robust economics, and benefits from significant mineral resource growth potential.

What are the top 3 key investor takeaways?

Brownfield, Scalable Development Project in a Top Tier Location.
Robust PEA: Low Capital Intensity
Private Landownership = Lower risk permitting process
Growth Opportunities
Supportive Copper Fundamentals