ATEX Closes Private Placement Financing Raising C$12.4 Million
ATEX Resources Inc., 25 Adelaide Street East, Suite 1900, Toronto, Ontario M5C 3A1
ATEX Closes Private Placement Financing Raising C$12.4 Million
Not for distribution to United States newswire services or for dissemination in the United States
TORONTO, Ontario, August 25, 2022 – ATEX Resources Inc. (TSXV:ATX) ("ATEX" or the
"Company") announces that it has completed its previously announced private placement
financing of units with a syndicate of agents co-led by Desjardins Capital Markets ("Desjardins")
and Paradigm Capital Inc. and including Cormark Securities Inc. and Canaccord Genuity Corp.
(collectively, the “Agents”), with Desjardins acting as sole bookrunner. Including the exercise in
full of the Agents' option at closing, a total of 20,013,261 units were issued (the "Units") at a price
of $0.62 per Unit raising gross proceeds of $12,408,222 (the "Offering"). Each Unit consists of
one common share of the Company (a "Common Share") and one-half of one Common Share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable to acquire one
Common Share at a price of $1.00 per share for a period of 36 months from closing of the Offering.
"We are greatly encouraged by the strong support from new and existing shareholders, reinforcing
our belief in the significant potential of the Valeriano Project," stated Raymond Jannas, President
and CEO of ATEX. "With our Phase III program now funded , we are focused on preparation for
and execution of the upcoming drilling, scheduled to commence in October. Last season's
successful Phase II program returned outstanding results including 1,160 metres grading 0.78%
copper equivalent, including 550 metres of 1.03% copper equivalent, and we are excited to follow
up on those results*."
ATEX intends to use the proceeds from the Offering to advance the Company's Valeriano Copper
Gold P roject and for general corporate purposes. ATEX paid the Agent s a commission of
$607,574 in respect of the Offering and has issued to the Agents 979,958 brok er warrants (the
"Broker Warrants"), each entitling the holder to acquire one Common Share at a price of $1.00
per share for a period of 12 months from closing of the Offering.
All securities issued today, including the Common Shares issuable on exercise o f the Warrants
or the Broker Warrants, are subject to a statutory hold period of four months and one day from
the date of issuance. The hold period ends on December 26, 2022. The Offering remains subject
to final approval from the TSX Venture Exchange (“TSXV”).
Insiders subscribed for 1,533,355 Units in the Offering. The private placement of Units to insiders
is exempt from the formal valuation and minority approval requirements of Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSXV
Policy 5.9 by the application of sections 5.5(a) and (b) and 5.7(1)(a) of MI 61 -101 because the
Common Shares trade on the TSXV and insider participation was less than 25% of the Company's
market capitalization as calculated for purposes of MI 61-101.
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and
accordingly, may not be offered or sold within the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable state securities requirements
or pursuant to exemptions therefrom. This press release does no t constitute an offer to sell or a
solicitation to buy any securities in any jurisdiction where such offer, sale or solicitation is not
permitted.
ATEX Resources Inc., 25 Adelaide Street East, Suite 1900, Toronto, Ontario M5C 3A1
*For full details on drill results and related technical disclosure see Company news release dated
June 13, 2022.
Qualified Person
Mr. Ben Pullinger, P.Geo. registered with the Professional Geoscientists Ontario, is the Qualified
Person, as defined by Canadian Securities National Instrument 43-101 Standards for Disclosure
for Mineral Projects, for the Valeriano Copper Gold Porphyry Project. Mr. Pullinger is the Senior
Vice President Exploration and Business Development of ATEX. He has reviewed and approved
the disclosure of the scientific and technical information contained in this press release.
About ATEX Resources Inc.
ATEX is a mineral exploration company focused on the acquisition, development and
monetization of projects throughout the Americas. ATEX's flagship Valeriano Copper Gold Project
is located in Chile's Atacama Region.
For further information, please contact:
Raymond Jannas
President and CEO
Email: [email protected]
Ben Pullinger
Senior VP Exploration and Business Development
Email: [email protected]
or visit ATEX's website at www.atexresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This news release contains forward -looking statements, including predictions, projections and
forecasts. Forward-looking statements include, but are not limited to: the use of proceeds from
the offering, plans for the evaluation of exploration properties including the Valeriano Copper Gold
Project; the success of evaluation plans; the success of exploration activities; mine development
prospects; and, potential for future metals production. Often, but not always, forward -looking
statements can be identified by the use of words such as "plans", "planning", "expects" or "does
not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates",
"does not anticipate", or describes a "goal", or variation of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements involve known and unknown risks, future events, conditions,
uncertainties and other factors which may cause the actual results, performance or achievements
to be materially different from any future results, prediction, projection, forecast, performance or
achievements expressed or implied by the forward -looking statements. These factors include,
among others: changes in economic parameters and assumptions; all aspects related to the
timing of exploration activities and receipt of exploration results; the interpretation and actual
results of current exploration activit ies; changes in project parameters as plans continue to be
refined; the results of regulatory and permitting processes; future metals price; possible variations
ATEX Resources Inc., 25 Adelaide Street East, Suite 1900, Toronto, Ontario M5C 3A1
in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour
disputes and other risks of the mining industry; the results of economic and 5 technical studies;
delays in obtaining governmental approvals or financing or in the completion of exploration; as
well as those factors disclosed in ATEX's publicly filed documents.
Although ATEX has attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward -looking statements, there may be
other factors that cause actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward -looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.
These forward -looking statements are made as of the date of this press release, and ATEX
assumes no obligation to update or revise them to reflect new events or circumstances, except
as required by law.
Neither the TSX Venture Exchange nor its regulation services provider has reviewed or accepts
responsibility for the adequacy or accuracy of the content of this news release.