Arizona Sonoran Pays for Independence, Takes Full Control of Cactus Mine

CASA GRANDE, AZ – February 17, 2026 – Arizona Sonoran Copper Company (ASCU) has taken full command of its flagship Cactus Project, executing a costly but strategic maneuver to dissolve its partnership with Nuton LLC, a technology venture backed by mining giant Rio Tinto. The companies announced the mutual and immediate termination of their Option to Joint Venture (OTJV), a move that solidifies ASCU’s independent path forward but comes with a price tag of up to US$35 million.

In a deal that underscores the junior developer's confidence in its Arizona-based copper asset, ASCU will make an immediate payment of US$15 million to Nuton. The agreement also includes a deferred payment of US$5 million, due on the one-year anniversary of the termination or upon a change of control transaction, whichever comes first. A further contingent payment of nearly US$15 million is tied to a change of control if one is announced within the next 24 months, effectively creating a high-stakes bet on the company’s ability to advance the project solo.

George Ogilvie, President and CEO of Arizona Sonoran, framed the separation amicably. “We appreciate Rio Tinto’s endorsement of the Cactus Project through Nuton’s initial investment and shareholding, together with the constructive joint work under the OTJV to study the potential of deploying Nuton technology at the Cactus Project,” he stated. “It has been a productive relationship, and we look forward to continuing engagement and dialogue with a valued shareholder in Nuton-Rio Tinto.”

The Price of Autonomy

The financial commitment is substantial for a pre-revenue development company. However, ASCU appears to have fortified its balance sheet in anticipation of such a move. The company entered 2026 with a cash position of approximately US$105 million, bolstered by significant capital raises in 2025, including a C$86.25 million private placement. This war chest is intended to fund a committed US$75 million work program for the year, aimed squarely at de-risking the Cactus Project.

The market’s reaction has been a barometer of this calculated risk. When ASCU first signaled its intent to discuss an early termination in late December 2025, its stock on the Toronto Stock Exchange saw a notable 7.5% drop. However, by the time of this week’s official announcement, investor sentiment appeared to have shifted. The company's stock has shown remarkable momentum over the past year, gaining over 197%, and even saw an 8.6% gain in the week leading up to the final termination news. This suggests that while the initial uncertainty was met with caution, the market has largely priced in the move, with many investors seemingly favoring the clarity and control of an independent strategy over the complexities of a joint venture.

Analyst coverage reflects this mixed but cautiously optimistic outlook. While acknowledging the significant cash outflows of a pre-revenue company, many maintain positive ratings, pointing to ASCU’s strong balance sheet and the inherent value of the Cactus Project. The average one-year price target sits at $6.63, indicating room for growth from its current standing.

A Strategic Pivot to Go It Alone

The termination represents a major strategic pivot. The partnership with Nuton was centered on evaluating its proprietary bio-leaching technology, which uses microorganisms to extract copper from challenging primary sulphide ores. This technology was seen as a key to unlocking the deeper, less-easily processed resources at Cactus, potentially enhancing the project's economics and extending its lifespan. Proceeding without this specialized technology partner raises questions about ASCU's long-term plan for these sulphide resources.

However, the deal ensures that the knowledge gained is not lost. As part of the termination, Nuton will transfer all non-interpretative results from its metallurgical testing of Cactus ore samples. This data will be invaluable as ASCU refines its own technical approach for the project’s full scope, which includes a significant sulphide resource beneath the more accessible oxide and enriched materials.

By regaining 100% control, ASCU eliminates potential future dilution of its ownership and gains complete authority over project timelines, technical decisions, and financing strategies. The company has already appointed financial advisors to secure project debt financing, signaling a clear intent to fund and build the mine on its own terms. This independence allows for more agile decision-making as the project navigates the final stages of study and permitting.

Cactus Project Forges Ahead

With the partnership dissolved, all eyes are on ASCU’s ability to execute its standalone development plan. The company is pushing forward on an aggressive timeline, with several critical milestones expected in 2026. A comprehensive Feasibility Study, which will provide the definitive blueprint for the mine's construction and operation, is slated for completion in the second half of the year. This study will build upon a 2025 Pre-Feasibility Study (PFS) that outlined a robust, long-life operation producing an average of 103,000 tonnes of copper cathode annually for its first decade.

The project's path is smoothed by its location on private land, which allows for a more streamlined, state-led permitting process. ASCU anticipates receiving its final key permits for water, air, and land reclamation later this year. This sets the stage for a potential Final Investment Decision (FID) as early as the fourth quarter of 2026, with the first copper production targeted for the second half of 2029.

The immediate development plan detailed in the PFS focuses on conventional and well-understood open-pit mining with heap leach and Solvent Extraction/Electrowinning (SXEW) processing—a method best suited for the oxide and enriched ores near the surface. While the departure of Nuton leaves a technological gap for processing the deeper sulphides, ASCU continues to highlight this resource as a major source of upside. The company now has the flexibility to evaluate a range of alternative technologies or future partnerships to unlock that value in a subsequent phase, without being tied to a single provider.