PROCEEDS ALLOCATED FOR EXPLORATION AND ADVANCEMENT OF VALERIANO PROJECT Not for distribution to United States newswire services or for dissemination in the United States TORONTO, Oct. 23, 2025 (GLOBE NEWSWIRE) -- ATEX Resources Inc. (TSXV: ATX; OTCQB: ATXRF) ("ATEX" or the "Company") is pleased to announce that due to strong demand, it has increased the size of the previously announced bought deal of units to 36,750,000 units of the Company (the "Units") at a price per Unit of C$2.60 for aggregate gross pro ...

Core Insights - ATEX Resources Inc. has reported exceptional initial results from its Phase VI drill campaign at the Valeriano Copper-Gold Project, with drill hole ATXD25C intersecting 164 meters of 2.72% copper equivalent (CuEq), including 40 meters of 4.73% CuEq, marking the highest-grade intercept to date in the B2B Zone [1][2][3] Drill Results - Drill hole ATXD25C intersected 164 meters of 2.72% CuEq, comprising 1.69% copper and 0.97 g/t gold, with notable intervals of 86 meters at 3.77% CuEq and 40 meters at 4.73% CuEq starting from 1,558 meters downhole [3][4] - The results indicate a broader intercept of 528 meters at 1.32% CuEq from 1,302 meters downhole, suggesting potential for increased grade in the B2B Zone [3][4] - The B2B Zone remains open in all directions, highlighting the potential for further mineral resource expansion [3][4] Phase VI Drill Program - The Phase VI drill program is fully operational with six rigs targeting approximately 25,000 meters of exploration, which commenced six weeks earlier than the previous Phase V program, reflecting improved operational efficiency [9] - The primary objective is to further define the high-grade B2B Zone, which has shown record initial results, potentially enhancing the overall grade profile of the Valeriano Project [9] Future Exploration - Additional drill holes, including ATXD26B, ATXD23A, and ATXD30, are currently in progress, targeting high-grade mineralization and new discovery areas, with assay results pending [10][12] - The ongoing exploration aims to confirm high-grade mineralization along strike and test untested geophysical anomalies, indicating a strategic focus on expanding the resource base [10][12] Company Overview - ATEX is exploring the Valeriano Copper-Gold Project located in the Atacama Region, Chile, which is part of an emerging copper-gold porphyry mineral belt [14] - The project hosts a significant mineral resource, with an indicated resource of 475 million tonnes at 0.88% CuEq and an inferred resource of 1,511 million tonnes at 0.75% CuEq, as reported on September 23, 2025 [14]

Core Insights - ATEX Resources is gaining attention for its large-scale, high-grade copper-gold Valeriano project in Chile, coinciding with historic highs in global copper demand [2]. Company Overview - ATEX Resources is currently conducting its sixth and largest drill program at the Valeriano project, which is expected to enhance the company's momentum in the market [2]. Industry Context - Chile's rich mining history and commitment to copper growth provide ATEX Resources with several advantages, positioning the company as a notable player in the copper-gold sector [2].

Group 1: Market Overview - Small-cap stocks have experienced a strong rally recently, driven by a favorable rate cut outlook which provides significant tailwinds [1][5] - The cheaper capital environment is particularly beneficial for smaller companies, contributing to their recent performance [1] Group 2: Company Insights - **Star Equity Holdings (STRR)**: This diversified holding company has seen its shares increase by 35% over the past three months, with the CEO acquiring approximately 660,000 shares in September [2][5] - **Anterix (ATEX)**: A wireless communications company focused on private broadband connectivity, the CEO purchased around 4,600 shares for $100,000 in mid-September. Despite recent pressure, shares have shown some recovery from 2025 lows [3][5] - **Energy Vault (NRGV)**: This company specializes in sustainable energy storage solutions. The CEO made a significant purchase of about 67,500 shares, with NRGV shares more than tripling in the last three months, outperforming the S&P 500's 12% gain [6][5] Group 3: Insider Activity - Recent insider buying activity from the CEOs of STRR, ATEX, and NRGV is seen as a positive indicator for long-term outlooks, although these transactions should not be solely relied upon for short-term performance [7][5]

Core Points - ATEX Resources Inc. has commenced trading on the OTCQB Market in the United States under the symbol "ATXRF" starting September 23, 2025, enhancing visibility and accessibility for a wider investor audience [1][2] - The company has applied for DTC eligibility, which will simplify trading processes in the U.S., increase liquidity, and reduce transactional costs for investors [3] - ATEX has changed its financial year-end from September 30 to December 31 to align with industry peers, facilitating better comparability of financial performance [5] Company Overview - ATEX is exploring the Valeriano Copper-Gold Project located in the Atacama Region, Chile, within a mineral belt that hosts several significant copper-gold porphyry deposits [6]

Core Insights - Anterix has announced new executive leadership appointments to enhance its ability to deliver innovative connectivity solutions for utilities and critical infrastructure sectors [1][2] - The company aims to sharpen execution, deepen market engagement, and scale its impact across various sectors [2] Leadership Changes - Heather Martin has been appointed as Chief Marketing Officer and Chief of Staff, bringing over 20 years of global marketing experience from NRG Energy and other major brands [3] - Elena Marquez has been appointed as Chief Financial Officer, previously serving as Vice President of Finance and Controller at Anterix, with a strong background in financial services and biotech [4] Strategic Initiatives - The company is focused on its Accelerator initiative, which is unlocking significant opportunities, and is making progress with the FCC on the 5x5 NPRM to maximize the value of its 10 MHz spectrum [5] - The leadership changes are seen as pivotal for Anterix's evolution, aiming to strengthen its foundation for innovation and accelerate its mission to modernize the grid [5] Market Position - Anterix is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning it uniquely to provide private wireless broadband solutions [7]

Group 1 - ClearBridge Investments released its second-quarter 2025 investor letter for the ClearBridge Small Cap Strategy, highlighting volatility in small-cap stocks, with the Russell 2000 Index rebounding 10% from its November 2024 highs [1] - The Russell 2000 returned 8.5% for the quarter, underperforming the Russell 1000 Index, which returned 11.1% [1] - The strategy underperformed the benchmark during this period, indicating challenges in the small-cap sector [1] Group 2 - Anterix Inc. (NASDAQ:ATEX) was highlighted in the investor letter, with a one-month return of -3.33% and a 52-week loss of 44.84%, closing at $21.49 per share with a market capitalization of $402.718 million [2] - Despite exceeding earnings expectations for its fiscal third quarter, Anterix's revenue was lower than expected, and net margins declined, impacting its performance [3] - Anterix's expansion agreement with the Lower Colorado River Authority aims to enhance broadband coverage to 102 counties in Texas, showcasing its spectrum capabilities [3] Group 3 - Anterix Inc. is not among the 30 most popular stocks among hedge funds, with 18 hedge fund portfolios holding the stock at the end of the second quarter, down from 26 in the previous quarter [4] - While Anterix is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Financial Data and Key Metrics Changes - The company ended Q1 of fiscal 2026 debt-free with a healthy cash position of approximately $41 million [13] - During the quarter, the company recorded a total gain of $35 million, which included $34 million from the exchange of narrowband for broadband licenses [14] - The company has removed approximately 20% of its cost base over the last year, enhancing efficiency and long-term cash flow [14] Business Line Data and Key Metrics Changes - The accelerator program has been oversubscribed, with engagements exceeding $500 million in potential contract value, indicating strong market interest [5] - More than 15 utilities engaged in the initial launch of the accelerator program, representing over $2 billion in potential contract value [6] Market Data and Key Metrics Changes - The company has cleared over 80% of incumbents within its spectrum band and has licenses or applications for broadband licenses in approximately 90% of all counties in the United States [15] - The actual network utilization is only a fraction of the total available capacity, with long-term simulations confirming significant headroom for scaling [10] Company Strategy and Development Direction - The company is focused on scaling effectively and delivering lasting value through its accelerator program, financial strength, and utility validation of 900 megahertz private broadband [4] - The company aims to push towards a 10 megahertz offering to meet and anticipate utilities' needs [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term value and market position, emphasizing the importance of methodical utility decision-making [34] - The company sees significant upside potential and is not in serious negotiations for strategic alternatives due to its strong market position [42] Other Important Information - The company plans to return capital to shareholders through various methods, including dividends classified as return of capital and share buybacks [13] - The company is engaged with the FCC to continue clearing spectrum and delivering licenses to meet regulatory commitments [15] Q&A Session Summary Question: Potential gain from remaining narrowband broadband license exchanges - Management clarified that gains from broadband licenses could represent over $1 billion over time, but timing is dependent on the FCC's approval process [22][23] Question: Plan for spectrum where utilities drop out of the pipeline - Management indicated that the drop of a utility from the scorecard does not reflect a loss of commitment, and they will continue to build relationships with replacements [30] Question: Market perception of the company's value - Management highlighted that the lack of announcements does not indicate a lack of progress, emphasizing the methodical nature of utility contracts [34][35] Question: Strategic alternatives process - Management confirmed that the strategic alternatives process is active but passive, as they see significant upside potential in the company [42]

Company Performance - Anterix reported a quarterly loss of $0.48 per share, better than the Zacks Consensus Estimate of a loss of $0.54, and improved from a loss of $0.84 per share a year ago, resulting in an earnings surprise of +11.11% [1] - The company posted revenues of $1.42 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 6.71%, and down from $1.52 million in the same quarter last year [2] - Anterix has surpassed consensus EPS estimates three times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] Stock Performance - Anterix shares have declined approximately 31.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.52 on revenues of $1.62 million, and for the current fiscal year, it is -$1.74 on revenues of $6.35 million [7] Industry Outlook - The Communication - Infrastructure industry, to which Anterix belongs, is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Anterix's stock performance [5]

PART I. FINANCIAL INFORMATION [Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The consolidated financial statements for the quarter ended June 30, 2025, show a significant shift to a net income of $25.2 million from a net loss of $15.5 million in the prior year's quarter, primarily driven by a non-cash gain of $33.9 million from the exchange of intangible assets [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $359.6 million, an increase from $333.1 million at March 31, 2025, primarily due to a rise in intangible assets from $229.0 million to $265.3 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $41,432 | $47,374 | | Intangible assets | $265,319 | $228,983 | | **Total assets** | **$359,577** | **$333,104** | | **Liabilities & Equity** | | | | Contingent liability | $23,311 | $23,429 | | Deferred revenue | $128,214 | $124,672 | | **Total liabilities** | **$174,806** | **$176,503** | | **Total stockholders' equity** | **$184,771** | **$156,601** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, the company reported a net income of $25.2 million, a significant turnaround from a net loss of $15.5 million in the same period of 2024, primarily driven by a $33.9 million gain on the exchange of intangible assets Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 (ended Jun 30) | Q1 2024 (ended Jun 30) | | :--- | :--- | :--- | | Spectrum revenue | $1,418 | $1,525 | | Total operating expenses | $13,806 | $16,630 | | Gain on exchange of intangible assets, net | $33,916 | $93 | | Income (loss) from operations | $22,481 | ($15,012) | | **Net income (loss)** | **$25,180** | **($15,524)** | | Net income (loss) per share basic | $1.35 | ($0.84) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, net cash used in operating activities was $3.1 million, compared to $2.4 million in the prior-year period, with overall cash and cash equivalents decreasing by $6.4 million Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($3,140) | ($2,361) | | Net cash used in investing activities | ($2,665) | ($5,400) | | Net cash used in financing activities | ($642) | ($1,071) | | **Net change in cash and cash equivalents** | **($6,447)** | **($8,832)** | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further information on financial statement items, including a $33.9 million gain on intangible asset exchange and $180.1 million in remaining performance obligations - The company operates as a **single operating and reportable segment**, focused on commercializing its **900 MHz spectrum assets** in the United States to utility and critical infrastructure customers[25](index=25&type=chunk)[36](index=36&type=chunk) - A significant **non-cash gain of $33.9 million** was recorded from exchanging narrowband licenses for new broadband licenses in 62 counties, which is the **primary driver of the company's net income** for the quarter[45](index=45&type=chunk) - As of June 30, 2025, the company had **$180.1 million in remaining performance obligations** from contracted revenue, which will be recognized over contract terms of up to 30 years[35](index=35&type=chunk) - The company has a share repurchase program with **$227.7 million remaining** as of June 30, 2025, and **no shares were repurchased** during the quarter[62](index=62&type=chunk)[64](index=64&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the $40.7 million year-over-year increase in net income primarily to a $33.8 million increase in the non-monetary gain on the exchange of intangible assets and a $2.4 million decrease in general and administrative expenses [Results of Operations](index=22&type=section&id=Results%20of%20Operations) The company's net income increased by $40.7 million to $25.2 million for the quarter ended June 30, 2025, compared to a net loss of $15.5 million in the prior-year period, mainly due to a $33.9 million gain on the exchange of intangible assets - The **primary driver** for the increase in net income was a **$33.8 million increase** in the gain on exchange of intangible assets, from $0.1 million in Q1 2024 to $33.9 million in Q1 2025[89](index=89&type=chunk) - General and administrative expenses **decreased by $2.4 million (19%)** due to lower headcount-related costs, stock compensation, and consulting fees[89](index=89&type=chunk) - Product development expenses **decreased by $0.6 million (36%)**, primarily from lower contract consulting fees and IT-related costs[89](index=89&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily sourced from its $41.4 million in cash and cash equivalents and customer contract proceeds, which management asserts are sufficient for at least the next 12 months - The company's principal source of liquidity is its cash and cash equivalents of **$41.4 million** as of June 30, 2025[88](index=88&type=chunk) - As of June 30, 2025, total estimated future payments for agreements with incumbents to acquire, retune, or swap wireless licenses are approximately **$44.2 million**[102](index=102&type=chunk) - The company has a guaranty agreement with Xcel Energy with a maximum potential liability of future undiscounted payments of approximately **$61.2 million** as of June 30, 2025[103](index=103&type=chunk) - The 2023 Share Repurchase Program has **$227.7 million remaining** available for repurchases through September 21, 2026[106](index=106&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies its primary market risks as interest rate sensitivity and inflation, with interest rate risk considered immaterial and no exposure to foreign currency risk - The company's **primary market risk** is interest income sensitivity from changes in U.S. interest rates, but a 10% change is **not expected to have a material impact**[108](index=108&type=chunk) - The company has **no exposure to foreign currency exchange rate fluctuations** as all operations and transactions are denominated in U.S. dollars[109](index=109&type=chunk) - **Inflationary factors are a risk**, potentially increasing operating expenses and negatively impacting customers' businesses, which could harm commercialization efforts[110](index=110&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report (June 30, 2025)[112](index=112&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[113](index=113&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any material legal proceedings - The company is **not involved in any material legal proceedings** at this time[117](index=117&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - There have been **no material changes** from the risk factors as previously disclosed in the company's 2025 Annual Report[118](index=118&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common stock during the three months ended June 30, 2025, with approximately $227.7 million remaining available for future repurchases under the 2023 Share Repurchase Program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value that May Yet be Purchased ($ thousands) | | :--- | :--- | :--- | :--- | | April 2025 | — | $ — | $227,662 | | May 2025 | — | $ — | $227,662 | | June 2025 | — | $ — | $227,662 | | **Total** | **—** | **$ —** | **$227,662** | [Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - **None**[122](index=122&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[124](index=124&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no director or executive officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - **No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement** during the three months ended June 30, 2025[125](index=125&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act - Key exhibits filed include **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906[127](index=127&type=chunk) - Financial statements and notes are provided in **Inline XBRL format** as Exhibit 101[127](index=127&type=chunk)