Axo Copper increases bought deal offering to $35M

Executive Summary

• Axo Copper Corp. has upsize its previously announced bought deal financing to $35 million following strong investor demand.
• The offering consists of 50 million units priced at $0.70 per unit, with each unit comprising one common share and one-half of a warrant exercisable at $1.00 for an 18-month period.
• Net proceeds will fund exploration and advancement of the La Huerta copper project and San Antonio gold project in Mexico, alongside general working capital needs.

Key Details

• Gross Proceeds: $35 million (upsize from previous announcement)
• Offering Size: 50 million units
• Price per Unit: $0.70
• Underwriters: Desjardins Capital Markets and BMO Capital Markets (co-lead underwriters and joint bookrunners)
• Unit Structure: Each unit includes one common share and one-half of one warrant
• Warrant Terms: Exercisable into one common share at $1.00/share; 18-month exercise period from closing
• Warrant Acceleration Clause: If the 10-trading-day VWAP on the TSX-V equals or exceeds $1.25, the company may accelerate warrant expiry by delivering notice, causing warrants to expire 30 days post-notice; unexercised warrants thereafter become void
• Underwriter Option: 30-day option to purchase up to an additional 15% of the offering, potentially raising an extra $5.25 million and bringing aggregate gross proceeds to $40.25 million
• Use of Proceeds: Exploration and advancement of the La Huerta copper property (Jalisco, Mexico), San Antonio gold property (Sonora, Mexico), and general working capital
• Closing Date: On or about February 19, 2026
• Regulatory & Listing Conditions: Subject to TSX-V and securities regulatory authority approvals; offered via short form prospectus in all Canadian provinces except Quebec and via Rule 144A private placement to U.S. buyers