Arizona Sonoran Copper is pivoting to a solo development strategy for its Cactus Project after mutually agreeing to terminate a joint venture option with Nuton, a venture backed by Rio Tinto. The decision marks a significant shift for the developer, which will now retain full control over the Arizona copper asset rather than sharing interest with the global mining giant’s subsidiary.
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Arizona Sonoran to Go Solo on Cactus Project After Nuton Exit
Arizona Sonoran Copper has terminated its joint venture option with Rio Tinto-backed Nuton, opting to advance its flagship Cactus Project independently. The Toronto-listed developer reached a mutual agreement to end the partnership on the Arizona-based site, triggering a series of cash payments to Nuton totaling up to $35 million.
Financial Terms of the Exit
The termination involves a structured payout to Nuton to settle the existing agreement. According to the company's announcement on Tuesday, Arizona Sonoran will fulfill its obligations through several tranches:
- An immediate cash payment of $15 million.
- A deferred payment of $5 million due within one year of the termination date.
- A contingent payment of approximately $15 million triggered only in the event of a change of corporate control.
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