Business
Auxico Resources Announces Acquisition of 20,000,000 Common Shares by Central America Nickel, on a Diluted Basis and Filing of Early Warning Report
MONTREAL, July 20, 2023 /CNW/ - Auxico Resources Canada Inc. (CSE: AUAG) (OTCQB: AUXIF) (the "Company" or "Auxico") is pleased to announce that Central America
About this update from Auxico Resources Canada, Inc.
[{"type":"text","content":" MONTREAL, July 20, 2023 /CNW/ - Auxico Resources Canada Inc. (CSE: AUAG) (OTCQB: AUXIF) (the \"Company\" or \"Auxico\") is pleased to announce that Central America Nickel Inc. (\"CAN\") has made a subsequent meaningful acquisition of Auxico's outstanding Debentures in the principal amount of $1,175,000 from current debenture holder Caroline Freymond (the \"Transaction\"). The Debentures are convertible into units each comprised of one common share priced at $0.20 and one warrant, for a total of 5,875,000 common shares and 5,875,000 warrants in the capital of Auxico; the warrants have a strike price of $0.25 for a period of 3 years from the date of issuance. The maturity date of the Debentures is October 23, 2023. The $1,175,000 principal amount of Debentures also carries a 5.875% profit interest in the operations of the Company. In addition, CAN has acquired 4,125,000 common shares and 4,125,000 warrants in the capital of Auxico from Caroline Freymond; each warrant is convertible into one common share at a strike price of $0.25, until February 28, 2026. CAN is a Canadian-based mining and technology firm with common directors and management as Auxico, and has acquired these Debentures as a long-term investor due to the strategic importance and substantial quantity of rare earth and other critical minerals contained in Auxico's highly-prospective Colombian and Brazilian projects. Prior to this Transaction, CAN held 7,550,000 shares and 4,275,000 warrants in Auxico. Inclusive of this acquisition of common shares from Caroline Freymond, CAN now holds 12.64% of the issued and outstanding common shares of Auxico. Pending complete conversion of the Debentures into units and the exercise of warrants, on a partially diluted basis CAN would hold a total of 31,825,000 common shares in the capital of Auxico. Based on the current share capital outstanding as of today's date, 31,825,000 common shares in the capital of Auxico would represent approximately 27.28% of Auxico on a partially diluted basis. Auxico has agreed with CAN the following: This acquisition of Debentures on CAN's part does not constitute a change in control of Auxico on the part of CAN. CAN does not intend to seek board additional representation or other management changes. CAN has acquired these Debentures strictly for investment purposes. CAN has agreed to not conver...