Business
ATEX Resources Receives Initial US$10 Million Under Credit Facility and Issues Warrants
Toronto, Ontario--(Newsfile Corp. - July 19, 2023) - ATEX Resources Inc. (TSXV: ATX) ("ATEX" or the "Company") is pleased to announce that, further to its news
About this update from Atex Resources Inc.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - July 19, 2023) - ATEX Resources Inc. (TSXV: ATX) (\"ATEX\" or the \"Company\") is pleased to announce that, further to its news release dated July 12, 2023, it has drawn and received US$10 million in funding under its credit agreement dated July 11, 2023 (the \"Credit Agreement\") entered into by the Company and a group led by existing strategic shareholders Firelight Investments LLC (\"Firelight\"), a company controlled by Pierre Lassonde (an insider of the Company), Beedie Investments Ltd. (\"Beedie\") and other arm's length parties (collectively with Firelight and Beedie, the \"Lenders\"). \"We welcome the continued support from our cornerstone shareholder through this Credit Agreement and are very happy to have Beedie Capital as our newest key stakeholder,\" stated Raymond Jannas, CEO and President of the Company. \"With over $20 million in liquidity, we are well positioned to execute our 2023-24 exploration drilling campaign.\" In connection with funding of this initial tranche under the Credit Agreement, the Company issued non-transferable warrants (the \"Facility Warrants\") to purchase an aggregate of 15,000,000 common shares of the Company to the Lenders on a pro rata basis, with each Facility Warrant entitling the holder to acquire one common share of the Company (each, a \"Facility Warrant Share\") at an exercise price of $1.30 per Facility Warrant Share until July 11, 2025, being the maturity date of the Credit Agreement (the \"Maturity Date\"). The Company may draw an additional US$5 million under the Credit Agreement in a second tranche, provided such funds are drawn at least three months prior to the Maturity Date. Proceeds from the Credit Agreement will be used to fund the exploration and development of the Company's Valeriano Copper Gold Project (including drilling, assays and working capital needs related thereto), completion of an updated resource study, and for general working capital and administrative purposes consistent with the Company's current practices. About ATEX Resources Inc. ATEX is exploring the Valeriano Copper Gold Project which is located within the emerging copper gold porphyry mineral belt linking the prolific El Indio High-Sulphidation Belt to the south with the Maricunga Gold Porphyry Belt to the north. This emerging belt, informally referred to as the L...