Axo Copper upsizes bought deal financing to $35 million
Axo Copper Corp. [AXO-TSXV] said it has upsized a previously announced bought deal financing that is now expected to raise $35 million, up from an earlier $25 million target. Under an amended agreement, an underwriting syndicate has pledged to purchase on a bought deal basis, 50 million units priced at 70 cents each.
Each unit consists of one common share and one half of one warrant. Each warrant is exercisable into one common share at $1.00 per warrant shares for 18 months from closing which is scheduled to occur on February 19, 2026. However, if at any time prior to the expiry date, AXO can accelerate the expiry of the warrants if Axo’s ten trading day volume weighted average closing price on the TSX Venture Exchange equals or exceeds $1.25.
Meanwhile, the company is granting the underwriters an option to purchase up to an additional 15% of the offering. That option is exercisable, in whole or in part at any time until and including the 30 days following closing of the offering. If the option is exercised, it could add an additional %5.25 million to the proceeds, bringing the aggregate proceeds of the offering to $40.25 million.
On Thursday, Axo Copper shares rose 7.5% or $0.06 to 86 cents. The shares trade in a 52-week range of 80 cents and 30 cents.
Axo Copper is a Canadian company with a focus on exploration and development of the La Huerta property, a new copper discovery in Jalisco, Mexico and the San Antonio gold property, a past-producing oxide copper mine located in Sonora Mexico.
Axo plans to use net proceeds from the offering for exploration and development of its La Huerta Project and San Antonio Gold Project and for general working capital purposes.
News of the upsized financing comes after Axo said it had completed the acquisition of Sapuchi Minera S. de R.L. de C.V. from Osisko Development Corp. [ODV-TSXV]. Sapuchi is the 100% owner of the San Antonio gold project. “We firmly believe this is a transformational move for the company,’’ said Axo CEO Jonathan Egilo. “San Antonio is in the advanced development stages, has existing infrastructure, along with excellent exploration and resource growth potential,’’ he said. “The transaction repositions AXO Copper as a late-stage development company, while we continue to explore our La Huerta project. We are well positioned for 2026, and look forward to begin advancing and growing San Antonio.’’
San Antonio is located approximately160 kilometres southeast of Hermosillo. Historical production dates back to the 1970s, with recent oxide copper mining operations from 2011 to 2018. Since Osisko Development’s acquisition of the project in 2020, the focus has shifted to advancing San Antonio as a gold project, including processing existing stockpiles that yielded 13,591 ounces of gold and generating an initial open pit mineral resource estimate of 576,000 ounces at 1.20 g/t gold in the indicated category and 544,000 ounces at 1.02 g/t in the inferred category.