ATEX Resources Announces Major Financing Initiative
ATEX Resources Inc. (TSXV: ATX; OTCQB: ATXRF) has achieved a significant milestone with the announcement of a C$85 million bought deal financing. This new funding will be directed towards enhancing exploration and development strategies for their Valeriano Project located in the Atacama region, Chile.
Details of the Offering
The company has reached an agreement with BMO Capital Markets and Desjardins Capital Markets, representing a syndicate of underwriters. Under this arrangement, the underwriters will acquire 32,700,000 units from ATEX at a price of C$2.60 per unit, generating approximately C$85 million in gross proceeds.
What Each Unit Includes
Each unit will consist of a common share and a warrant. Each warrant will be exercisable for a common share at C$4.00, valid for four years from the closure date of the financing.
Acceleration Rights Explained
ATEX has included an Acceleration Right in the terms of the offering. This right allows the company to accelerate the maturity date of the warrants one year following the closing, provided that the share price trades above C$5.00 for 20 consecutive days.
Underwriters' Involvement and Options
The underwriters also hold the option to purchase additional securities of up to 15% of the total offering value, fantastic for covering over-allotments. This option is valid until 48 hours before the announced closing date.
Private Placement Structure
All securities from this offering will be offered through private placements within Canada and, in certain cases, outside of Canada where applicable exemptions from registration will apply. This allows ATEX to navigate regulatory landscapes while securing essential capital.
Utilization of Proceeds
Funds from this financing will primarily support the exploration and development of the Valeriano Project, alongside covering vital working capital needs. The anticipated closing date for the offering, subject to regulatory approvals, is projected for early November.
Fees and Commissions
For their efforts, the underwriters will receive a cash fee equating to 5.00% of the gross proceeds from the offering, which may be reduced to 2.00% for specific identified purchasers.
An Overview of the Valeriano Project
The Valeriano Copper-Gold Project, situated within a promising mineral belt in Chile, is currently under exploration by ATEX. This area is known for hosting several significant copper-gold deposits at various development stages, reinforcing the geological potential of Valeriano.
Mineral Resources at Valeriano
Valeriano boasts substantial mineral resources, with an indicated resource of 475 Mt at 0.88% CuEq and inferred resources of approximately 1,511 Mt at 0.75% CuEq. These robust figures highlight the project's viability and future potential for copper and gold extraction.
About ATEX Resources
ATEX Resources is committed to advancing the Valeriano Project and exploring its extensive opportunities in the burgeoning copper-gold domain. As the company progresses, it aims to foster relationships within the investment community and raise awareness about its growth potential.
Contact Information
For more information about ATEX Resources and their current initiatives, please reach out to:
Ben Pullinger,
President and CEO
Email: bpullinger@atexresources.com
Aman Atwal,
Vice President, Business Development and Investor Relations
Email: aatwal@atexresources.com
Contact Number: 1-647-398-9405
Frequently Asked Questions
What is the purpose of the C$85 million financing?
The financing aims to enhance exploration and development of the Valeriano Project.
Who is underwriting the offering?
BMO Capital Markets and Desjardins Capital Markets are the lead underwriters for this arrangement.
What are the terms of the warrants?
The warrants are exercisable at C$4.00 and valid for four years from the offering's closure.
How will the funds be allocated?
Funds will be used primarily for exploration activities and general working capital needs.
What is the significance of the Valeriano Project?
The Valeriano Project is strategically located in a mineral-rich area known for copper-gold deposits, highlighting its potential for growth.
