AXO Copper Corp. Announces $25M Bought Deal Financing of Units

Executive Summary

• AXO Copper Corp. announced a bought‑deal financing of 35,715,000 units at $0.70 per unit for gross proceeds of approximately C$25 million.
• Each unit consists of one common share and half of a warrant exercisable at $1.00 per share; an underwriter option for up to an additional 15% of the offering could raise total gross proceeds to about C$28.75 million.
• Net proceeds are earmarked for exploration and advancement of the La Huerta copper project in Mexico, the San Antonio gold project, and general working capital.

Key Details

• Underwriters: Desjardins Capital Markets and BMO Capital Markets (co‑lead underwriters and joint bookrunners) with a syndicate of additional underwriters.
• Units Offered: 35,715,000 units at C$0.70 per unit → Gross proceeds ≈ C$25,000,000.
• Unit Composition:
• 1 common share of AXO Copper Corp.
• ½ warrant (each whole warrant exercisable for one common share at $1.00).
• Warrant Terms: Exercise price $1.00 per share; 18‑month exercise period from closing. Accelerated expiry possible if TSXV volume‑weighted average price ≥ C$1.25, triggering a 30‑day accelerated exercise period.
• Underwriter Option: Up to an additional 15% of the offering (≈5,357,250 units). If fully exercised, adds C$3,750,075 gross proceeds, bringing total gross proceeds to ≈ C$28,750,000.
• Use of Proceeds:
• Exploration and development of the La Huerta copper project (Jalisco, Mexico).
• Advancement of the San Antonio gold project (Sonora, Mexico).
• General working capital.
• Closing Date: Expected on or about February 19, 2026; subject to customary conditions including TSXV and securities regulator approvals.
• Offering Mechanics: Units offered via a short‑form prospectus filed in all Canadian provinces except Québec; U.S. investors may participate under Rule 144A private placement exemption.
• Regulatory Filings: Short‑form prospectus to be posted on SEDAR+; copies available from Desjardins Capital Markets upon request.

Notable Quotes

• “The capital raised will accelerate our exploration program at La Huerta and support continued development of San Antonio, positioning AXO Copper for rapid growth,” – Jonathan Egilo, President and CEO.