TORONTO – May 4, 2026 – The Sprott Physical Copper Trust (NYSE: SCOP) (TSX: COP.UN) (TSX: COP.U), managed by Sprott Asset Management LP, a wholly-owned subsidiary of Sprott Inc. (NYSE/TSX: SII), has announced a significant update to its “at-the-market” (ATM) equity program. This strategic enhancement allows the Trust to issue up to US$500 million of its units (the “Units”), a move directly connected with the recent listing of the Units on the NYSE Arca (“NYSE”).
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The Trust, established as a closed-end entity to invest and hold substantially all of its assets in physical copper metal, is leveraging this updated program to bolster its capital-raising capabilities. The ATM Program, encompassing distributions in both Canada and the United States, is now governed by an amended and restated sales agreement (the “A&R Sales Agreement”) dated May 4, 2026. This agreement underscores a concerted effort to optimize the Trust’s financial flexibility and operational scope.
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Expanded Distribution Network and Agent Syndicate
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The A&R Sales Agreement formalizes the roles of a comprehensive syndicate of agents, ensuring broad market access for the Trust’s unit issuances. Parties to this agreement include Sprott Asset Management (as the manager of the Trust), the Trust itself, and a group of distinguished financial institutions:
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- Canadian Agents: Cantor Fitzgerald Canada Corporation (“Cantor Canada”), Virtu Canada Corp. (“Virtu Canada”), BMO Nesbitt Burns Inc. (“BMO Canada”), and Canaccord Genuity Corp. (“Canaccord Canada”).
- U.S. Agents: Cantor Fitzgerald & Co. (“Cantor”), Virtu Americas LLC (“Virtu”), BMO Capital Markets Corp. (“BMO”), and Canaccord Genuity LLC (“Canaccord”).
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These agents, collectively referred to as the “Agents,” are instrumental in facilitating the sales of Units across North American markets. The A&R Sales Agreement is publicly accessible, filed on EDGAR via the United States Securities and Exchange Commission’s (“SEC”) website at www.sec.gov and the SEDAR+ website maintained by the Canadian Securities Administrators at www.sedarplus.ca.
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Operational Mechanics of the ATM Program
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Sales of Units through the Agents will be executed via “at the market” issuances on both the NYSE and the Toronto Stock Exchange (“TSX”), as well as other existing trading markets in the United States and Canada. This mechanism dictates that sales will occur at the prevailing market price at the time of each transaction, implying that sale prices may naturally vary. This approach provides the Trust with a flexible and market-responsive method for capital generation.
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Crucially, the program maintains strict adherence to jurisdictional regulations. The U.S. Agents are explicitly restricted to selling Units on marketplaces within the United States and are not permitted to, directly or indirectly, advertise or solicit offers to purchase Units in Canada. Conversely, the Canadian Agents are authorized to sell Units exclusively on marketplaces in Canada. This clear delineation ensures regulatory compliance and market integrity across both national trading environments.
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The volume and timing of any distributions under the ATM Program remain at the sole discretion of the Trust. This discretionary control allows Sprott Asset Management to strategically manage capital inflows in response to market conditions and the Trust’s specific funding requirements.
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Strategic Deployment of Proceeds for Physical Copper Acquisition
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A core aspect of this updated program is the stated intent for the utilization of any generated proceeds. The Trust explicitly plans to use funds from the ATM Program to acquire physical copper metal. This aligns directly with the Trust’s fundamental objective: to invest in and hold substantially all of its assets in physical copper. The ability to raise up to US$500 million through this program provides a significant pathway for the Trust to expand its physical copper reserves, subject to its established investment and operating restrictions.
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Comprehensive Regulatory Filings and Transparency
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The execution of the ATM Program is underpinned by a robust framework of regulatory documentation, ensuring transparency and compliance with securities laws in both the United States and Canada. The offering is being made pursuant to:
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- A prospectus supplement dated May 4, 2026 (the “U.S. Prospectus Supplement”), which supplements the Trust’s U.S. base prospectus. This is included in its registration statement on Form F-10 (File No. 333-295543), filed with the SEC on May 4, 2026.
- An amended and restated prospectus supplement dated May 4, 2026 (the “Canadian A&R Prospectus Supplement”), which supplements the Trust’s Canadian short form base shelf prospectus dated July 3, 2024.
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These comprehensive “Offering Documents” are readily available for public review. The U.S. Prospectus Supplement, U.S. Base Prospectus, and the Registration Statement can be accessed on the SEC’s EDGAR website at www.sec.gov. Similarly, the Canadian A&R Prospectus Supplement and the Canadian Base Shelf Prospectus are available on the SEDAR+ website maintained by the Canadian Securities Administrators at www.sedarplus.ca.
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The update to the Sprott Physical Copper Trust’s ATM equity program, enabling the issuance of up to US$500 million in units, represents a strategic enhancement to its capital-raising capabilities. This move, closely tied to its NYSE Arca listing, positions the Trust to systematically expand its physical copper holdings, reinforcing its core investment objective through a flexible, market-responsive funding mechanism.
