Aztec Minerals closes $10-million bought deal

Executive Summary

• Aztec Minerals Corp. has closed its upsized bought deal private placement, raising aggregate gross proceeds of $10,004,655.
• The company sold 42,573,000 common shares at a price of 23.5 cents per share, including the full exercise of the underwriter's overallotment option for an additional 5,553,000 shares.
• Net proceeds will be used to accelerate exploration on the Tombstone (Arizona) and Cervantes (Mexico) projects and for general working capital.

Key Details

• Gross Proceeds: $10,004,655.
• Shares Sold: 42,573,000 common shares.
• Issue Price: 23.5 cents per share.
• Underwriter: Stifel Canada (sole underwriter and bookrunner).
• Overallotment: Fully exercised; additional 5,553,000 shares sold.
• Underwriter Compensation:
  • Cash commission: $700,326 (7% of gross proceeds).
  • Warrants issued: 2,980,110 non-transferable common share purchase warrants (7% of shares sold).
• Warrant Terms:
  • Exercise Price: Equal to the issue price (23.5 cents).
  • Expiration Date: October 16, 2028.
  • Ratio: One warrant per share.
• Use of Proceeds: Exploration work on Tombstone gold-silver and CRD silver-lead-zinc-copper-gold project in Arizona, US; Cervantes gold-copper project in Sonora, Mexico; and general working capital.
• Hold Period: Four months and one day from the closing date for offered shares, broker warrants, and broker warrant shares.

Notable Quotes

• "The closing of this upsized and over allotted $10-million bought deal financing represents a significant milestone for Aztec Minerals. The company is now well funded to advance our respective precious-metals-focused projects through accelerated exploration. The financing was subscribed to by institutional investors and provides for the necessary capital to further derisk our projects." — Simon Dyakowski, President and CEO