Antimony Resources: Capital increase of CAD 5.0 million successfully placed; funding for exploration activities significantly expanded - GBC
Flow-through financing of CAD 5.0 million successfully completed
ANNONS
Antimony Resources Corp. announced on 5 October 2026 the successful comple- tion of a capital raising with gross proceeds of CAD 5.00 million. As part of this financing, a total of 10.64 million new shares were issued at an issue price of CAD 0.47 per share. The capital raising took the form of a so-called flow-through financing, whereby certain tax deductions for qualifying exploration expenditure are passed on to investors. Owing to these tax benefits, such shares can often be placed at a premium to the market price. In the case of Antimony Resources, the issue price was approximately 14.6% above the closing price of CAD 0.41 on the day the financing was announced (29 September 2026).
Taking into account the brokerage commission of CAD 0.25 million, the net pro- ceeds before further costs amount to approximately CAD 4.75 million. In addition, 521,277 broker warrants with an exercise price of CAD 0.75 and a term of twelve months were issued. The funds raised are to be used primarily to finance further exploration work on the Bald Hill project. In our view, the successful completion of this capital raising exercise is to be regarded positively, as it secures the financing for the next stages of exploration. At the same time, due to the specific tax structure of the financing, the company was able to achieve an issue price higher than the share price at the time, thereby limiting dilution.
The project valuation derived from a peer-group comparison (see initial coverage study dated 30 March 2026) remains valid. Compared with our previous valuation, we have, on the one hand, added the net cash inflow of CAD 4.75 million. However, this is offset by an increase in the number of shares by 10.64 million to 132.93 million shares. At the same time, we have incorporated the warrants issued as part of the capital increase into our Black-Scholes model. Owing to the lower share price, the discount resulting from the outstanding warrants and options has fallen to CAD -6.18 million (previously: CAD -12.00 million). As the dilutive effect of the capital increase outweighs other factors, we have calculated a slightly lower fair value per share of CAD 2.52 (EUR 1.60 at a rate of CAD 1.00 = EUR 0.63, as at 15 October 2026, 08:50 am UTC). We are maintaining our BUY rating.
