Axo Copper Announces Acquisition of Past Producing San Antonio Gold Project from Osisko Development

Executive Summary

• Axo Copper entered a definitive purchase agreement to acquire Sapuchi Minera (owner of the San Antonio Gold Project in Sonora, Mexico) from Osisko Development.
• The consideration is an issuance of ~15.3 M Axo shares (≈9.99% ownership for Osisko) plus contingent payments; a parallel share‑issuance to OR International will give it ~4.99% ownership.
• An amended metals stream agreement will deliver 7.15% of payable gold and silver ounces to the partners, with up‑to $8.55 M in contingent gold‑delivery payments tied to production milestones.

Key Details

• Purchase Agreement (Nov 21 2025) – Axo Copper to acquire 100% economic interest in San Antonio Project; closing expected Q4 2025, subject to TSX‑V and regulatory approvals.
• Consideration to Osisko Development – Issuance of 15,305,536 Axo common shares (or number resulting in 9.99% post‑closing ownership) plus contingent payments:
• Cash equal to 70% of any Mexican VAT refund due to Sapuchi Minera.
• Up to $4 M payable (cash or Axo shares at Axo’s option) upon filing a NI 43‑101 feasibility study and upon first gold pour.
• Additional share issuances if Axo raises ≥ $10 M in equity, preserving Osisko’s 9.99% stake.
• Share Issuance Agreement with OR International – Issuance of 7,652,768 Axo shares (or number resulting in 4.99% ownership) plus similar share‑issuance protection if Axo raises ≥ $10 M.
• Amended Metals Stream Agreement – Parties to receive 7.15% of payable gold and silver ounces; transfer price set at 30% of spot prices. Contingent payments up to $8,550,000 in gold deliveries for hitting 50k‑oz, 100k‑oz, and 150k‑oz production milestones ($2.85 M each).
• Lock‑up & Voting Support – Both Osisko Development and OR International agree to a 12‑month lock‑up on the issued Axo shares and to provide voting support for 24 months post‑closing.
• Non‑interest Bearing Loan – Axo will extend a loan to Sapuchi Minera to satisfy any ejido/community obligations prior to closing.
• Project Highlights (San Antonio) –
• Total indicated resources: 14.9 Mt @ 1.20 g/t Au = 576 koz Au; inferred: 16.6 Mt @ 1.02 g/t Au = 544 koz Au.
• Oxide, transition and sulphide zones with respective grades and contained ounces (see tables in release).
• Existing infrastructure: grid power, highway access, camp for ~200 personnel, heap‑leach pads, carbon‑in‑column plant.
• Advisors – Stifel Canada (financial advisor); Fasken Martineau DuMoulin LLP (legal counsel).

Notable Quotes

“We are excited to announce this transformational acquisition… The high‑grade oxide resource and existing infrastructure represent a tremendous opportunity to accelerate first production…” – Jonathan Egilo, President & CEO, Axo Copper.