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Auxico Resources Canada Inc
Symbol AUAG
Shares Issued 78,654,578
Close 2023-10-23 C$ 0.155
Market Cap C$ 12,191,460
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Auxico creditor converts $1.1M of debt into 5.87M units

2023-10-25 11:39 ET - News Release

Mr. Pierre Gauthier reports


One of Auxico Resources Canada Inc.'s convertible debenture holders, Central America Nickel Inc., has converted its debentures for a total consideration of $1,175,000, based on a previously announced acquisition of shares and debentures; for reference, please see the news release the company issued on July 20, 2023. The debentures have been converted in accordance with their terms, into units, each comprising one common share priced at 20 cents and one warrant, for a total issuance of 5,875,000 common shares and 5,875,000 warrants in the capital of Auxico; the warrants have a strike price of 25 cents for a period of three years from the date of issuance, until Oct. 20, 2026. Following the conversions by the debenture holders by Oct. 23, 2023, as the maturity date, Auxico now has 100,165,191 common shares outstanding.

Pierre Gauthier, chief executive officer of Auxico, commented: "Central America Nickel's debenture conversion reflects a shared commitment to advance Auxico's operations, which serves the parallel purpose of meeting the increasing global demand for critical minerals across diversified projects and regions. Auxico's projects are a natural extension to CAN's current portfolio of mineral assets and its proprietary technologies for the processing and extraction of critical minerals, which follows on a track record of creating successful collaborations to unlock value for shareholders across both firms. The strategic alignment of visions and operations of Auxico and CAN are further solidified by the predominant shareholding position that CAN has taken, which synchronizes the projects execution and future of both companies."

CAN is a privately held corporation based in Montreal, focused on the sourcing and processing of critical minerals and energy metals using patented and patent-pending technologies, in partnership with strategic partners. CAN has chosen to convert the debentures as a long-term investor, and in alignment with common interests of the two companies due to the strategic importance of rare earth and other critical minerals supply sources within Auxico's portfolio of mineral assets in Colombia, Bolivia and Brazil.

As a result of the debenture conversion, CAN now holds a total of 17.05 million common shares, or 17.02 per cent of the issued and outstanding common shares of Auxico. In addition, with this conversion, CAN now holds 13,275,000 warrants, and pending complete exercise of warrants, on a partially diluted basis CAN would hold a total of 30,325,000 common shares in the capital of Auxico. Based on the current share capital outstanding as of today's date, 30,325,000 common shares in the capital of Auxico would represent approximately 26.73 per cent of Auxico's shareholding on a partially diluted basis.

About Auxico Resources Canada Inc.

Auxico Resources Canada is a Canadian company that was founded in 2014 and based in Montreal, trading on the Canadian Stock Exchange under symbol AUAG and on the OTCQB under symbol AUXIF. Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico, Bolivia and the Democratic Republic of the Congo.

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