ATEX Provides Notice of Warrant Acceleration — Additional C$52.6M Potential Proceeds for Shareholders
ATEX Resources Announces Acceleration of Warrant Expiry Date and Potential C$52.6 Million Inflow
Toronto, Ontario — ATEX Resources Inc. (TSXV: ATX, OTCQB: ATXRF) (“ATEX” or the “Company”) has issued an important notice to warrant holders indicating that the expiry date of its previously issued common share purchase warrants has been accelerated. This decision means that holders of these warrants now have until February 20, 2026 to exercise their rights to purchase common shares at a fixed price of C$2.50 per share. If all warrants are exercised before the new expiry date, the Company could receive approximately C$52.6 million in gross proceeds.
Background: Warrant Issuance and Acceleration Terms
On November 1, 2024, ATEX Resources issued a total of 21,057,477 common share purchase warrants (the “Warrants”). Each Warrant gave its holder the right to acquire one common share in the capital of the Company at a price of C$2.50. The initial expiry date for these Warrants was set for November 1, 2029. However, under the terms of the warrant agreement, ATEX retained the right to accelerate the expiry date if certain market conditions were met.
According to the acceleration terms, if the Company’s common shares traded at a **volume-weighted average price (VWAP)** of at least **C$3.00** on the TSX Venture Exchange for at least **20 consecutive trading days**, ATEX could send an acceleration notice to warrant holders, shortening the period available to exercise their Warrants. Because the VWAP threshold was reached, the acceleration mechanism was triggered.
What Acceleration Means for Warrant Holders
Upon issuance of the acceleration notice, holders of the Warrants were given a limited window — ending on February 20, 2026 — to exercise their rights. This means warrant holders must decide whether to exercise their Warrants and pay C$2.50 per share to acquire ATEX common shares by that deadline. Any Warrants not exercised by February 20, 2026 will be cancelled and rendered worthless without compensation.
This acceleration clause is standard in many warrant agreements and exists to allow the issuing company to capture capital sooner when its share price has sustained a strong performance for an extended period.
Potential Impact on the Company’s Financing and Operations
If all 21,057,477 Warrants are exercised by warrant holders before the deadline, the Company would receive approximately **C$52.6 million** in additional cash. This represents a significant potential cash inflow that can be used to fund ongoing exploration, project development, and general corporate purposes.
This capital could play an important role as ATEX advances its key asset — the Valeriano Copper-Gold Project — located in the Atacama Region of northern Chile. The project lies within an emerging copper-gold porphyry belt known as the “Link Belt,” which hosts several major discoveries and development-stage deposits.
According to the most recent disclosures, the Valeriano Project has attractive grades and scale, with a significant estimated mineral resource. The Company’s exploration efforts continue to focus on understanding the full potential of the property and advancing the project toward future stages of evaluation and potential development.
How Warrant Exercise Benefits Stakeholders
From the Company’s perspective, accelerating the expiry date of the Warrants at a time when its shares have performed well can help capture capital sooner without waiting until the original long-term expiry. It also aligns warrant holders’ incentives with the Company’s view on the strength of its share price and prospects.
For warrant holders, the accelerated notice provides a clear decision point. Investors who believe in ATEX’s long-term prospects may choose to exercise their Warrants and acquire shares at a discount to recent trading levels. Those who do not wish to exercise may simply let their Warrants expire.
This arrangement can create a “win-win” situation if many warrant holders take up their rights to purchase shares, contributing new capital to ATEX while potentially benefiting from future share price gains. However, if a large number of Warrants are exercised, the issuance of up to 21,057,477 new common shares could lead to dilution of existing shareholders’ ownership percentages.
Company’s Strategic Position and Future Prospects
ATEX Resources has positioned itself as a growth-oriented explorer focused on copper and gold, two key metals with strong demand dynamics. Copper is critical for electrification and renewable energy infrastructure, while gold has historically been prized for its role as a store of value.
The Valeriano Project benefits from its location in one of the most prospective porphyry districts in the world. Along the emerging Link Belt, nearby projects such as Filo del Sol, Josemaria, and other large deposits demonstrate the potential for world-class discoveries. Although ATEX’s Valeriano Project is still in the exploration stage, its reported mineral resource highlights significant tonnage and robust copper-gold content.
The potential proceeds from warrant exercises can provide ATEX with meaningful additional funding as it executes its exploration strategy. This may include expanding drilling programs, completing technical studies, and advancing environmental and permitting work while engaging with stakeholders and local communities.
Considerations for Investors
Investors in ATEX or holders of the Warrants should consider several factors as they evaluate whether to exercise their rights:
- Share Price vs. Exercise Price: Warrant holders will compare the current and expected future share price with the C$2.50 exercise price to decide if exercising is financially advantageous.
- Deadline for Action: The accelerated expiry of February 20, 2026 imposes a firm deadline. Holders who fail to act before that date will lose their rights to purchase shares.
- Impact of Dilution: Although the cash inflow benefits the Company, issuing new shares dilutes existing equity. Investors should weigh this potential dilution against the Company’s growth prospects.
- Broader Market Conditions: Copper and gold markets fluctuate as global economic conditions evolve. Changes in commodity prices can influence investor sentiment and the Company’s valuation.
Overall, the acceleration of the Warrants by ATEX is a noteworthy corporate development offering both strategic capital opportunities for the Company and a clear, time-limited choice for warrant holders.
Summary of Key Points
In summary:
- ATEX Resources accelerated the expiry date of 21,057,477 common share purchase Warrants.
- Holders have until February 20, 2026 to exercise their Warrants at C$2.50 per share.
- If all Warrants are exercised, the Company could receive ~C$52.6 million in gross proceeds.
- Unexercised Warrants after the deadline will be cancelled without compensation.
- New share issuance from exercises could dilute existing shareholders but adds crucial capital.