ATERRA to Raise C$8.355 Million to Advance Copper-Gold Exploration in Chile

en.Wedoany.com Reported - On October 5, Canadian mining exploration company ATERRA Metals signed an amended agreement with a syndicate of underwriters led by Research Capital Corporation, increasing the maximum size of its proposed private placement equity financing from C$6 million to C$8.355 million, while maintaining the minimum financing size at C$4 million. The company plans to use the net proceeds to advance Phase II exploration at the Totora copper-gold project in the Atacama Region of Chile, as well as to supplement working capital and meet general corporate purposes. The financing is being conducted on a best-efforts basis and remains subject to completion of the transaction.

The Totora project is located in the Dos Amigos mining district in Chile's Third Region, approximately 60 kilometers south of the city of Vallenar, and includes the Taruca, Clinton, Frontera and Sevilla mining claims, covering multiple copper-gold porphyry mineralized systems. ATERRA Metals holds its interest in the project through an option agreement. On September 24, the company announced the maiden inferred mineral resource estimate for the project, comprising 159.8 million tonnes of ore at a copper equivalent grade of 0.51%, including a copper grade of 0.30% and a gold grade of 0.15 g/t, with the resource estimate using a 0.2% copper cut-off grade.

Under the Phase II exploration program, the company will conduct infill drilling to improve the geological confidence of the existing inferred resources, and carry out step-out extension drilling to investigate the extent of mineralization. For exploration targets within the project area that have not yet been adequately evaluated, the company plans to conduct geophysical surveys and, based on the survey results, arrange diamond drilling. This phase will also initiate preliminary metallurgical testing, involving technical evaluations related to ore processing and metal recovery.

The offering price is C$0.06 per share, with Research Capital Corporation serving as lead agent and sole bookrunner, and Desjardins Capital Markets participating in the syndicate. Under the amended placement arrangements, the syndicate will receive a 6% cash commission on the first C$6.9 million of gross proceeds, with the commission rate reduced to 1% on the excess; a reduced 3% commission rate may apply to subscriptions meeting certain conditions. The syndicate will also receive warrants linked to a portion of the placement shares, with each warrant entitling the holder to purchase one common share at the offering price within 24 months following closing.

The company plans to complete the financing on or about October 14, 2026, subject to adjustment by mutual agreement between the company and the syndicate. The transaction remains subject to receipt of necessary regulatory approvals, including conditional approval from the Canadian Securities Exchange. Under applicable Canadian listed issuer financing exemption rules, the common shares issued in this offering will be freely tradable in accordance with law following closing of the financing.