Axo Copper closes $40.25-million bought deal offering

Executive Summary

• Axo Copper Corp. closed a $40.25 million bought deal financing following the full exercise of its over-allotment option.
• The offering sold 57.5 million units at $0.70 per unit, with each unit comprising one common share and one-half of a warrant exercisable at $1.00 per share for 18 months.
• Proceeds will be directed toward advancing the La Huerta and San Antonio projects, as well as funding working capital and general corporate purposes.

Key Details

• Gross Proceeds: $40.25 million
• Units Sold: 57.5 million (following full exercise of over-allotment option)
• Price per Unit: $0.70
• Unit Composition: 1 common share + 1/2 common share purchase warrant
• Warrant Terms: Exercisable at $1.00 per share for 18 months post-closing (subject to acceleration)
• Use of Proceeds: Advancement of La Huerta (copper) and San Antonio (gold/oxide copper) projects, working capital, and general corporate purposes
• Underwriters: Syndicate led by Desjardins Capital Markets and BMO Capital Markets (co-lead underwriters/joint bookrunners) and Stifel Canada
• Underwriter Commission: 6.0% of gross proceeds
• Targeted Share Issuances: 2,363,516 common shares to Osisko Development Corp. (ODV) and 1,180,575 common shares to OR Royalties International Ltd., to be issued within five business days
• Ownership Maintenance: Issuances to ODV and OR Royalties preserve their 9.99% and 4.99% ownership interests, respectively, tied to the initial $10 million (U.S.) tranche; no additional shares will be issued for proceeds exceeding $10 million (U.S.)
• Regulatory Status: Conditionally accepted by the TSX Venture Exchange for listing of common and warrant shares; conducted in all Canadian provinces except Quebec and outside Canada per applicable securities laws
• Legal Counsel: Fasken Martineau DuMoulin LLP (company counsel); Wildeboer Dellelce LLP (underwriters' counsel)