By Adriano Marchese

 

Arizona Sonoran Copper Co. said it will raise 30.5 million Canadian dollars, the equivalent of US$23.8 million, by way of a private placement, which includes Anglo-Australian mining giant Rio Tinto PLC.

The Toronto-listed copper developer said it will issue around 15.2 million common shares at a price of C$2 apiece, representing a discount of 3.4% to Wednesday's closing price.

Among the investors, Rio Tinto will subscribe for 6.4 million and will then own around 7.4% of Arizona Sonoran's outstanding share capital.

Meanwhile, private equity firm Tembo Capital Elim Co-Investment LP will subscribe for 3.9 million shares, its holding will reduce to 35.5% from 37.6%, Arizona Sonoran said.

The company said the funds provide it with significantly more capital to put toward delivering scale to the main project by way of intensive exploration and metallurgical testing at its Cactus mine in Arizona.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

April 28, 2022 07:27 ET (11:27 GMT)

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