Auxico Resources Canada Inc (CSE:AUAG, OTCQB:AUXIF) announced Wednesday that one of the holders of its convertible debentures Central America Nickel (CAN) has converted its debentures for total consideration of $1,175,000.
Montreal-based private firm CAN focuses on sourcing and processing critical minerals and energy metals using its patented and patent-pending technologies.
Following the debenture conversion, CAN now holds 17,050,000 shares or a 17.02% stake in Auxico.
It also holds 13,275,000 warrants. Once exercised, CAN would hold 30,325,000 shares in Auxico which based on the current share capital outstanding as of October 25, 2023, would represent an approximately 26.73% stake in Auxico.
“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 CEO Pierre Gauthier said in a statement.
“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.”
Auxico noted that the debentures were converted in accordance with their terms into units comprising one common share priced at $0.20 and one warrant, for the total issuance of 5,875,000 shares and 5,875,000 warrants.
The warrants have a strike price of $0.25 for three years from the date of issuance.
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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