Aztec Minerals Corp. (TSX-V:AZT; OTCQB:AZZTF) has reported the closing of its previously announced bought deal private placement, with aggregate gross proceeds of C$6,403,200. The financing included the full exercise of Stifel Canada’s option to acquire additional units at the issue price.
#Details of the financing
Aztec sold 20,010,000 units at C$0.32 per Unit. Stifel Canada acted as the sole underwriter and bookrunner, and exercised its option for an additional 15% of the Units sold under the Offering at the Issue Price, representing additional gross proceeds of up to approximately C$835,200.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole Warrant allows its holder to purchase one Common Share at C$0.42 for 24 months following September 22, 2026.
#Underwriter compensation
Aztec paid Stifel Canada a cash commission of C$316,992, equal to 6% of the gross proceeds of the Offering. The company also issued 990,600 non-transferable Broker Warrants, equal to 6% of the number of Units sold under the Offering.
The stated commission and Broker Warrant figures exclude proceeds paid by, and Units sold to, certain subscribers for which the Underwriter did not receive a commission. Each Broker Warrant permits the holder to acquire one common share at an exercise price equal to the Issue Price on or before September 22, 2028.
#Planned use of proceeds
Aztec said it intends to direct the net proceeds toward exploration at its Tombstone gold-silver and CRD silver-lead-zinc-copper-gold project in Arizona, USA, and its Cervantes gold-copper project in Sonora, Mexico. The proceeds are also intended for general working capital purposes. The release does not provide a further breakdown of the planned allocation.
#Restrictions and regulatory disclosures
The Common Shares and Warrants comprising the Units, along with the Warrant Shares, Broker Warrants and Broker Warrant Shares, are subject to a hold period of four months and one day from the closing date under applicable Canadian securities laws.
The release states that the securities have not been, and will not be, registered under the United States Securities Act of 1933 or applicable state securities laws. They may not be offered or sold within the United States, or to or for the account or benefit of U.S. Persons, unless registration under the 1933 Act and applicable state securities laws is completed or an exemption is available.
Aztec identified receipt of final approval from the TSX Venture Exchange in respect of the Offering, and the timing of that approval, among the risks and uncertainties that could cause actual events or results to differ materially from its forward-looking information. The company also referred to other risks contained in its public filings on SEDAR+.
#Company background
Aztec Minerals describes itself as a mineral exploration company focused on the Cervantes project in Sonora, Mexico, and the Tombstone project in southern Arizona. Its shares trade on the TSX-V under the symbol AZT and on the OTCQB under the symbol AZZTF.
#Key Takeaways
- Aztec Minerals reported the closing of a private placement with aggregate gross proceeds of C$6,403,200.
- The company sold 20,010,000 Units at C$0.32 per Unit, with the underwriter’s option exercised for an additional 15% of the Units sold.
- Each Unit includes one common share and one-half of one warrant, with whole Warrants exercisable at C$0.42 for 24 months following September 22, 2026.
- Aztec paid C$316,992 in cash commission and issued 990,600 Broker Warrants to Stifel Canada, subject to the stated exclusions.
- The securities carry a hold period of four months and one day, while U.S. sales remain subject to registration or an available exemption.
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