ATEX Resources Announces Closing of Upsized Bought Deal Financing for Gross Proceeds of C$110 Million
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On November 6, 2025, ATEX Resources announced the closing of an upsized "bought deal" public offering for total gross proceeds of C$110 million. The company issued 42,262,500 units at a price of C$2.60 per unit. Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at an exercise price of C$4.00 for 48 months. The financing was upsized from the initially announced C$85 million on October 22, 2025, due to strong demand, including the full exercise of the underwriters' over-allotment option. The proceeds will be used for exploration and development of the Valeriano Project and for general working capital.
The closing of this upsized C$110 million financing is a material positive event for ATEX Resources.
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Financial Strength and De-risking: This capital injection eliminates any near-to-medium term financing risk. The company now has a robust treasury to fully fund its ambitious 25,000-metre Phase VI drill program at Valeriano, as well as ongoing de-risking activities like engineering and environmental studies. The company's cash position, which was C$26.2 million as of June 30, 2025, is now significantly bolstered, likely exceeding C$100 million pro-forma after the recent US$21 million land acquisition.
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Validation and Investor Confidence: The upsizing of the offering from C$85 million to C$110 million indicates exceptionally strong institutional and investor demand. This serves as a powerful third-party validation of the Valeriano project's quality, especially following the major resource update in September and the spectacular high-grade drill results announced in October.
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Execution of Strategy: The financing is the logical culmination of a series of well-executed strategic steps: delivering excellent drill results, publishing a world-class resource estimate, strategically acquiring key surface rights, and then securing the funding to aggressively advance the project. This demonstrates competent management that is systematically de-risking the project and building shareholder value.
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Dilution and Overhang: The primary negative is the issuance of 42.3 million new shares and 21.1 million new warrants. This creates immediate dilution and a future warrant overhang that could temper price appreciation as the stock approaches the C$4.00 exercise price. However, given the project's scale and the strong demand for the offering, this level of dilution is necessary and has been well-received by the market.
The stock price has drifted down from the C$2.60 financing price to C$2.39, which is a typical short-term reaction as the market absorbs the new supply. This does not detract from the overwhelmingly positive strategic implications of securing such a large amount of capital on favorable terms.
ATEX Resources Inc. is a Canadian mineral exploration company. Its flagship asset is the 100%-owned Valeriano Copper-Gold Project located in the Atacama Region of Chile. Valeriano is a globally significant copper-gold porphyry deposit with an associated high-grade breccia zone (the "B2B Zone"). The project has a massive mineral resource estimate (MRE) and has consistently produced exceptional drill results demonstrating both large scale and high grades. The deposit remains open for expansion. The project is subject to a 2.5% net smelter royalty (NSR).