Alexco Resource Corp. Announces Increase to Bought Deal Offering of Flow-Through Shares
June 04 2018 - 11:41AM
Alexco Resource Corp. (NYSE AMERICAN:AXU),
(TSX:AXR)
(“Alexco” or the “Company”) is pleased
to announce that in connection with its previously announced bought
deal financing, the Company and a syndicate of underwriters (the
“Underwriters”) have agreed to increase the size of the previously
announced financing. The Company will now issue 4,703,000
flow-through common shares (“Flow-Through Shares”) at a blended
price of approximately C$1.92 per Flow-Through Share for aggregate
gross proceeds of C$9,041,150 (the “Offering”).
The issued securities are comprised of: (i)
966,500 flow-through shares with respect to “Canadian exploration
expenses” priced at $2.05 per Flow-Through Share; (ii) 1,736,500
flow-through shares with respect to “Canadian exploration expenses”
that also qualify as “flow-through mining expenditures” priced at
$2.05 per Flow-Through Share; and (iii) 2,000,000 flow-through
shares with respect to “Canadian development expenses” priced at
$1.75 per Flow-Through Share.
Gross proceeds from the sale of the Flow-Through
Shares will be used to fund a surface exploration program, continue
the underground drilling program at the Bermingham deposit, and
also continue development of the Flame & Moth decline at the
Company's Keno Hill Silver project by incurring qualified
expenditures.
The Flow-Through Shares to be issued under the
Offering will be offered in accordance with the terms of a
prospectus supplement to be filed in British Columbia, Alberta,
Ontario, Saskatchewan and Manitoba.
Closing is expected on or about June 13, 2018
and is subject to regulatory approval including that of the Toronto
Stock Exchange and NYSE American LLC.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful, including in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any securities laws of any
state of the United States and may not be offered or sold within
the United States or to, or for the account or benefit of, U.S.
persons (as defined in Regulation S under the U.S. Securities Act)
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
About Alexco
Alexco Resource Corp. holds the historical high
grade Keno Hill Silver District located in Canada’s Yukon
Territory. Employing a unique business model, Alexco also
provides mine-related environmental services, remediation
technologies and reclamation and mine closure services to both
government and industry clients through the Alexco Environmental
Group, its wholly-owned environmental services division.
Contact
Clynton R. Nauman, Executive Chairman and Chief Executive
Officer Lisa May, Director of Investor Relations Phone: (778)
945-6577 Email: lmay@alexcoresource.com
Some statements (“forward-looking statements”)
in this news release contain forward-looking information concerning
the Offering and the use of proceeds thereof, Alexco’s anticipated
results and developments in Alexco’s operations in future periods,
planned exploration and development of its properties, plans
related to its business and other matters that may occur in the
future, made as of the date of this news release. Forward-looking
statements may include, but are not limited to, statements with
respect to the proposed Offering, anticipated closing of the
Offering, potential exercise by the Underwriters of the
over-allotment option, anticipated use of proceeds, future
remediation and reclamation activities, future mineral exploration,
the estimation of mineral reserves and mineral resources, the
realization of mineral reserve and mineral resource estimates,
future mine construction and development activities, future mine
operation and production, the timing of activities and reports, the
amount of estimated revenues and expenses, the success of
exploration activities, permitting time lines, requirements for
additional capital and sources and uses of funds. Forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties and other factors which could cause actual events or
results to differ from those expressed or implied by the
forward-looking statements. Such factors include, among others,
risks related to regulatory approval of the Offering; actual
results and timing of exploration and development activities;
actual results and timing of mining activities; actual results and
timing of environmental services activities; actual results and
timing of remediation and reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of silver, gold, lead, zinc
and other commodities; possible variations in mineable resources,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; accidents, labour disputes and other
risks of the mining industry; First Nation rights and title;
continued capitalization and commercial viability; global economic
conditions; competition; and delays in obtaining governmental
approvals or financing or in the completion of development
activities. Forward-looking statements are based on certain
assumptions that management believes are reasonable at the time
they are made. In making the forward-looking statements included in
this news release, Alexco has applied several material assumptions,
including, but not limited to, the assumption that regulatory
approval of the Offering will be obtained in a timely manner; all
conditions precedent to completion of the Offering will be
fulfilled in a timely manner; Alexco will be able to raise
additional capital as necessary, that the proposed exploration and
development will proceed as planned, and that market fundamentals
will result in sustained silver, gold, lead and zinc demand and
prices. There can be no assurance that forward-looking statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Alexco expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as otherwise
required by applicable securities legislation.
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