Axo Copper Announces Closing of $40,250,000 Bought Deal Financing Including Full Exercise of the Over-allotment Option

Axo Copper Corp. (AXO) has closed a heavily upsized bought deal financing, raising C$40.25 million in gross proceeds. The offering consisted of 57,500,000 units priced at C$0.70 per unit. Each unit includes one common share and one-half of a common share purchase warrant, exercisable at C$1.00 for 18 months. This closing includes the full exercise of the 15% over-allotment option. The lead underwriters were Desjardins Capital Markets, BMO Capital Markets, and Stifel Canada. Notable participation or mention was made of strategic partners Osisko Development Corp. (ODV) and OR Royalties International Ltd. (OR).

This financing is a material positive for the following reasons: - Capital Infusion: The C$40.25 million represents a massive increase in liquidity compared to the C$7.0 million reported in September 2025. It provides the necessary "war chest" to advance the newly acquired San Antonio Gold Project and maintain exploration momentum at La Huerta. - Market Validation: The deal was originally announced at C$25 million (Jan 28), then increased to C$35 million (Feb 13), and finally closed at C$40.25 million. This progression indicates significant institutional demand and high confidence in the management’s pivot from copper exploration to gold development. - Strategic Alignment: The involvement of Osisko Development and OR Royalties as stakeholders provides technical and financial backing that is rare for a company of this size. - Dilution vs. De-risking: While the issuance of 57.5 million shares is dilutive (roughly 27% of the pro-forma basic shares), the cash significantly de-risks the $4 million USD in deferred payments owed to Osisko for the San Antonio acquisition.

Axo Copper Corp. was initially focused on the La Huerta Copper Project in Jalisco, Mexico, where it reported high-grade copper intercepts (e.g., 5.03% Cu over 13.7m). However, following the January 2026 acquisition of the San Antonio Gold Project from Osisko Development, its focus has shifted toward gold. - Flagship Project: San Antonio Gold Project (Sonora, Mexico). - Resource: 576koz Au Indicated (1.2 g/t) and 544koz Au Inferred (1.02 g/t). It is a past-producing, heap-leach project with significant existing infrastructure. - Secondary Project: La Huerta (Copper exploration).