Axo Metals (TSX-V:AXO) expects to close a C$50 million ($51.17 million) bought deal financing on or about 27 November to fund Mexican exploration.
The company has signed an agreement with Desjardins Capital Markets, acting for an underwriting syndicate, to issue roughly 51 million common shares at C$0.98 each, discounted from its C$1.07 close on 9 November.
The underwriters hold an option, exercisable within 30 days of closing, to purchase up to an additional 15% of the offering. Full exercise will add C$7.5 million, lifting total gross proceeds to about $57.5 million.
Net proceeds will fund exploration and advancement of the San Antonio Gold Project and the La Huerta Project, alongside general working capital.
Located in Sonora, San Antonio hosts an indicated resource of 576,000 ounces of gold and 1.37 million ounces of silver, grading 1.2 grams per tonne gold (Au) and 2.9g/t silver (Ag).
Inferred resources add 544,000 ounces of gold and 1.76 million ounces of silver, grading 1.02g/t Au and 3.3g/t Ag across oxide, transition, and sulphide material.
Meanwhile, La Huerta in Jalisco is a new copper discovery where initial surface sampling and first-pass drilling returned ‘high-grade’ copper.
The offering is subject to regulatory and TSX Venture Exchange approvals.
Axo Metals is a Canadian mineral explorer focused on mineral properties in Mexico.
Write to Paula Fabe at Mining.com.au
Main image: Axo Metals
