Centerra Lifts Azimut Stake to 12.67% in $7 Million Raise

Azimut Exploration Inc. (TSXV: AZM) closed a non-brokered private placement on August 18, 2026 for approximately $7 million, with Centerra Gold raising its stake from 9.84% to 12.67% and Agnico Eagle and CDPQ Sodémex exercising their participation rights.

Azimut Exploration Inc. (TSXV: AZM), which also trades in the United States as AZMTF on the OTCQX market, said it closed a non-brokered private placement on August 18, 2026 for total proceeds of roughly $7 million. What makes the financing worth a second look is not the size — modest by any standard — but who wrote the cheques.

Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) lifted its ownership of Azimut from 9.84% to 12.67%, an increase of 2.83 percentage points that takes it comfortably past the 10% threshold at which a holder is generally treated as an insider under Canadian securities rules. Agnico Eagle Mines Limited (TSX/NYSE: AEM) and CDPQ Sodémex Inc., a wholly owned subsidiary of Caisse de dépôt et placement du Québec — La Caisse — each exercised their respective participation rights, according to the company's announcement carried by INN Precious Metals. The release was marked not for distribution to United States news wire services, the standard legend on a Canadian placement sold outside the U.S.

Two tranches, two very different prices

The raise came in two pieces. Azimut issued 6,038,647 flow-through shares at $0.828 apiece for gross proceeds of $5,000,000, and 3,333,332 ordinary — "hard dollar" — shares at $0.60 each for gross proceeds of $2,000,000. That puts the flow-through paper 38% above the hard-dollar price, an illustrative comparison drawn from the two stated issue prices rather than a figure the company disclosed.

Flow-through shares are a Canadian tax instrument defined in subsection 66(15) of the Income Tax Act. The issuer renounces its eligible exploration expenditures to the subscriber, who then deducts them against personal or corporate income. Because the buyer captures a tax benefit alongside the equity, flow-through shares routinely price at a premium to the open market — and the size of that premium is a fair proxy for how much appetite exists for Canadian exploration risk at a given moment. A premium of this magnitude points to a functioning, not a distressed, funding window for junior gold explorers working on Quebec ground.

The trade-off is that flow-through money is ring-fenced. It has to be spent on qualifying exploration work, which is why issuers pair it with a hard-dollar tranche that can cover general and administrative costs, land payments and anything else the tax rules would not allow. Here the split was $5,000,000 restricted to exploration against $2,000,000 of unrestricted cash — a roughly 71%/29% mix by proceeds on the figures given, and a structure that says most of this money is going into the ground.

What the share count now looks like

Azimut reported 110,311,289 common shares issued and outstanding on closing. The placement itself created 9,371,979 new shares across both tranches, meaning the new paper represents about 8.5% of the post-closing count — both figures derived from the numbers disclosed and offered here for scale rather than as company statements. Applying Centerra's stated 12.67% to the post-closing total implies a holding of roughly 14 million shares, again an illustrative calculation.

For a junior explorer, dilution of that order in exchange for a fully funded exploration season is generally considered a reasonable exchange rate, particularly when the buyers are existing holders rather than new money arriving at a discount. The fact that all three strategic shareholders showed up matters more than the arithmetic: Agnico Eagle and La Caisse holding their pro-rata positions prevents the kind of quiet stake erosion that often follows a raise, while Centerra chose to go further than its rights required.

Why strategics keep circling Quebec exploration ground

Senior producers do not take double-digit stakes in explorers for portfolio yield. They take them to buy optionality on discovery and to secure a seat at the table if something material is found. A holding above 12% typically comes with information rights, anti-dilution protections and, practically speaking, a strong deterrent to any third party contemplating a competing bid. Centerra's move should be read in that light.

La Caisse's involvement through CDPQ Sodémex adds a second dimension. Quebec's institutional capital has a long record of backing exploration inside the province, and its presence on a cap table is often as much about jurisdictional development as returns. Combined with the flow-through structure, which is itself a policy tool designed to push private money into Canadian exploration, the financing is a fairly clean illustration of how junior gold work in Quebec actually gets paid for.

Where the shares sat as the news landed

Azimut's U.S. listing, AZMTF, last traded at 0.45 — the quote feed did not specify the currency — up 3.44% from the prior close of 0.43, in a session range of 0.43 to 0.45. That was a rare green print on a soft day for equities: the S&P 500 tracker SPY closed at $767.45, down 0.68%, the Nasdaq 100 proxy QQQ fell 1.69% to $717.51, and the Dow tracker DIA slipped 0.24% to $532.91, all as of 20:00 GMT on August 18, 2026.

The strategic holders had a duller day. Centerra's NYSE line, CGAU, closed at 21.28, down 2.92% from 21.92, while its Toronto listing CG finished at 48.37, off 0.35%. Agnico Eagle closed at 186.94, down 0.97% from 188.78 after ranging between 184.62 and 189.69. Currencies were not specified in the quote feed for any of these lines; the Toronto and New York listings of the same issuer trade in different currencies, which explains the gap between the CG and CGAU prints.

What to watch from here

Three things. First, the exploration budget: $5,000,000 of flow-through money must be committed to qualifying work, so a program disclosure is the logical next release. Second, whether Centerra stops at 12.67% — insiders who cross 10% file changes publicly, and further creep would be visible. Third, whether the flow-through premium seen here holds for the next cohort of Quebec juniors coming to market. Premium pricing on tax-assisted paper is one of the more honest indicators of how much risk capital is available to explorers, and right now it is signalling that the door is open.

Key facts

• Total proceeds: Approximately $7 million, closed August 18, 2026
• Tranche pricing: 6,038,647 flow-through shares at $0.828; 3,333,332 hard-dollar shares at $0.60
• Centerra Gold stake: Increased from 9.84% to 12.67%
• AZMTF last close: 0.45, +3.44%, as of 20:00 GMT Aug 18, 2026

Frequently asked questions

How much did Azimut Exploration raise and when did it close?

Azimut Exploration closed a non-brokered private placement on August 18, 2026 for total proceeds of approximately $7 million. The raise was split into $5,000,000 of flow-through shares priced at $0.828 each and $2,000,000 of ordinary hard-dollar shares priced at $0.60 each, for a combined 9,371,979 new common shares.

What is a flow-through share?

A flow-through share is a Canadian tax instrument defined in subsection 66(15) of the Income Tax Act. The issuing company renounces eligible exploration expenditures to the subscriber, who deducts them against taxable income. Because buyers receive a tax benefit as well as equity, flow-through shares usually price above the market price of ordinary shares.

Which shareholders participated in the financing?

Centerra Gold Inc. increased its ownership of Azimut from 9.84% to 12.67%. Agnico Eagle Mines Limited and CDPQ Sodémex Inc., a wholly owned subsidiary of Caisse de dépôt et placement du Québec, each exercised their respective participation rights, meaning all three strategic holders took part in the raise.

How many Azimut shares are now outstanding?

Azimut reported 110,311,289 common shares issued and outstanding following the closing of the offering. The placement itself issued 9,371,979 new shares across the flow-through and hard-dollar tranches, which works out to roughly 8.5% of the post-closing share count on the figures disclosed.

Why did the flow-through shares cost more than the ordinary shares?

Flow-through shares carry a tax deduction that ordinary shares do not, so buyers pay up for it. Azimut's flow-through shares were priced at $0.828 against $0.60 for the hard-dollar shares, a premium of about 38% based on the two stated issue prices. The size of such premiums tends to reflect appetite for Canadian exploration risk.

How did the shares of the companies involved trade on August 18, 2026?

As of the 20:00 GMT close, Azimut's OTCQX line AZMTF was up 3.44% at 0.45. Centerra's NYSE listing CGAU closed down 2.92% at 21.28 and its Toronto listing CG fell 0.35% to 48.37. Agnico Eagle closed at 186.94, down 0.97%. Broad indices were also lower on the day.

Sources

• Azimut Closes $7 Million Private Placement Financing with Participation of Key Existing Shareholders — INN Precious Metals

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