Arizona Sonoran has the option to repurchase 0.14% of Elemental Altus’ 0.68% NSR for $1.9m by 10 July 2025. Credit: Ziadi Lotfi/Shutterstock.

Arizona Sonoran Copper Company (ASCU) has announced that RG Royalties, a subsidiary of Royal Gold, has acquired a 2.5% net smelter royalty (NSR) on the Cactus copper project in Arizona.

The purchase, made from Tembo Capital, amounts to $55m. Arizona Sonoran retains the right to buy back 0.5% of this NSR for $7m by 10 July 2025.

Tembo Capital initially acquired the 2.5% NSR as part of a 3.18% NSR financing with Resource Capital Funds in 2020. The remaining portion is now held by Elemental Altus Royalties.

ASCU president CEO and director George Ogilvie said: “We are pleased to see the royalty move to a top calibre royalty and streaming company, with a history of participating in project financing packages and a positive prior experience with our management team.

“We believe that Royal Gold, as the acquirer, is yet another strong endorsement and recognition of the Cactus Project and its go-forward plan, by a sophisticated mining financier. Our team has dedicated itself to growing the asset to a significant size, securing water, permits, community support and, as reflected in our 2024 PEA [preliminary economic assessment], demonstrating a capital efficient project with robust forecast economics.

“We will continue to de-risk and advance Cactus as we move forward with various technical studies, through pre‑feasibility to definitive feasibility study, to an eventual final investment decision.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Arizona Sonoran also has the option to repurchase 0.14% of Elemental Altus’ 0.68% NSR for $1.9m by 10 July 2025, potentially reducing the total NSR to 2.54%. It is also assessing options for the NSR buyback opportunities.

Last month, the company announced a strategic private placement with Hudbay Minerals valued at C$19.9m ($13.83m).

The transaction involves Hudbay subscribing to 11,852,064 common shares at C$1.68 per share.

Prior to this placement, Hudbay held 2,870,800 shares, equating to a 2.12% stake in Arizona Sonoran.

Following the transaction, Hudbay’s ownership will increase to approximately 9.99% of the common shares.

The funds from this placement will support drilling, exploration, technical studies and further development of the Cactus project.