AuTECO

Canaccord Genuity Acts as Exclusive Financial Advisor to AuTECO on its A$65 Million Acquisition of Rambler in CCAA

Canaccord Genuity is pleased that on August 31, 2023, its client, AuTECO Minerals Limited (ASX:AUT) (“AuTECO” or the “Company”) announced that the Company’s bid to acquire the business, property and assets (the “Acquisition”) of Rambler Metals and Mining Canada Limited (“Rambler”) was chosen by Rambler, in consultation with Grant Thornton Limited acting as court-appointed monitor to Rambler and via a sales and investment solicitation process ordered by the Supreme Court of Newfoundland and Labrador in Canada under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”), and that AuTECO and Rambler have entered into a binding agreement (the “Agreement”). The acquisition was completed on October 19, 2023.

The Company’s bid involved the offer to purchase target assets by way of the cancellation of all outstanding issued capital in Rambler, the issuance of new shares to the Company and a reverse vesting order in the CCAA process.

Under the terms of the Agreement, AuTECO will retain the business, property and assets of Rambler (except for the assets, liabilities and contracts specifically excluded pursuant to the terms of the Agreement), and AuTECO will provide Rambler with a total consideration of A$65.0 million:

•          Upon Completion: A$35.0 million in cash and A$15.0 million in shares of the Company; and

•          18-Month Anniversary: A$7.5 million in cash and A$7.5 million in shares of the Company

Concurrent with the Acquisition, AuTECO also announced that it is undertaking a capital raising of at least A$50.0 million (the “Capital Raise”). The Capital Raise is a condition precedent to completion of the Acquisition.

Canaccord Genuity is acting as exclusive financial advisor to AuTECO.

Canaccord Genuity is also acting as sole lead manager and bookrunner in connection with the Capital Raise.

AuTECO is a gold exploration company focused on advancing its high-grade Pickle Crow Project (“Pickle Crow”) located in Ontario, Canada. Pickle Crow hosts a JORC resource of 2.8 Moz at 7.2 g/t gold, making it one of the highest-grade gold resources in the world.

Rambler is a mining and development company that has 100% ownership of the Green Bay Copper-Gold Project, a fully operational base and precious metals processing facility and year-round bulk storage / shipping facility located in Newfoundland and Labrador, Canada.

This transaction highlights Canaccord Genuity’s global franchise capabilities in navigating complex cross-border restructuring and M&A, metals and mining and capital raising expertise.
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