VANCOUVER, June 18, 2018 /CNW/ - Alexco Resource Corp.
(NYSE American: AXU) (TSX: AXR) ("Alexco" or the "Company") is
pleased to announce that its wholly owned subsidiary, Alexco
Environmental Group Holdings Inc. ("AEG"), has acquired Contango
Strategies Ltd. ("Contango"), a private company based in
Saskatoon, Saskatchewan, for
consideration of $1,388,000
comprising $971,600 in cash and
237,999 common shares of Alexco at a deemed value of
$416,400. The common shares were
valued at $1.75 per share using
a 20 day volume weighted average price per share. Payment will be
in two tranches with $1,018,000
(comprising $601,600 in cash paid on
closing and $416,400 in Alexco common
shares to be issued upon receipt of all requisite regulatory
approvals) and the remaining $370,000
cash payment to be made on the first anniversary of the transaction
closing. The acquisition includes all of Contango's operations
including $450,000 in working
capital, property, plant and equipment at an estimated value of
$330,000 and 20 full-time staff.
Contango specializes in biological (passive, semi-passive and
active) water treatment systems for mining, oil and gas, and
industrial operations. Contango operates a year-round
environmentally controlled pilot-scale facility, which allows for
the development, testing and optimization of technologies such as
bioreactors and constructed treatment wetlands. Additionally,
genetic profiling using Contango's in-house DNA sequencing facility
and microbiology laboratories can detect and identify microbes for
applications including bioreactor optimization, corrosion and
fouling correction, and environmental remediation.
Jim Harrington, President of AEG
commented, "With the addition of Contango's advanced
technology and research facilities it will enable AEG to continue
to be leaders in the sector and at the forefront of applied
environmental science, especially in mining related industrial
applications. The Contango team will not only expand our capacity
and bring with it a strong client base but it will enable AEG to
provide a much broader and diversified service to the
industry."
Clynt Nauman, CEO and Chairman of
Alexco added, "We are very pleased to welcome Dr. Simair, Dr.
Friesen and the rest of the Contango team to Alexco and look
forward to them being important contributors to the overall growth
of AEG. This compelling transaction delivers immediate value to
shareholders with annual revenue expected to be in excess of
$2.5 million but more importantly, I
believe this type of science and technology is the future of
environmental remediation and provides AEG with important
additional tools to tackle complex environmental issues for our
many clients. This transaction is the next step in growing our
environmental business and should be viewed as our commitment to
see AEG reach its full potential."
Monique Simair, President and
Founder of Contango commented, "We are excited to join the Alexco
team and look forward to expanding the range of services offered to
our clients. This transaction enables us to contribute Contango's
unique technologies and services to a broader client base and
provides, under one banner, a full breadth of water treatment
capabilities. Our laboratories and pilot-scale testing facilities
will complement AEG's expertise in the construction and operation
of water treatment systems and turn-key environmental site
management and remediation."
About Dr. Monique Simair, PhD,
RPBio, PBiol, EP
Dr. Simair holds a PhD in applied microbiology and post-doctoral
research associateship in environmental microbiology and
biogeochemistry. Dr. Simair's expertise in bioremediation and
passive/semi-passive water treatment has focused on the mining
sector and industrial sites, spanning from conceptual design, to
technical and public regulatory hearings, through to implementation
and long-term closure. Dr. Simair has worked on passive,
semi-passive, and biological water treatment systems such as
constructed wetlands, bioreactors, and in-situ treatment for mines
across North America and some
overseas locations. Since founding Contango in 2010, she has grown
the company into a thriving water treatment firm with laboratories
and dedicated pilot facilities. As a result, she has been named one
of Canada's future entrepreneurial
leaders by Profit Magazine (2011) and added to its W100 list of
Canada's top female entrepreneurs
(2015).
About Dr. Vanessa Friesen,
PhD, EP
Dr. Friesen holds a PhD in applied microbiology and biochemistry
and is a Partner and Principal Scientist at Contango. Dr.
Friesen has extensive background in scientific design and testing
of biological treatment systems and is regarded by industry as a
leading scientist in the discipline of biological treatment of
selenium. Dr. Friesen has coordinated the designs and testing for
passive and semi-passive water treatment systems and provided
specialist support for bioreactor performance monitoring and
correction, optimization and enhanced control. Dr. Friesen has led
Contango's internal technology development team for six years,
guiding Contango to becoming the first independent company in
North America to provide contract
genomic microbial profiling for the environmental and water
treatment sectors, and maintaining Contango at the forefront of
this sector.
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.
Please visit the Alexco website at www.alexcoresource.com
Some statements ("forward-looking statements") in this news
release contain forward-looking information concerning 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.
Forward-looking statements may include, but are not limited to,
statements with respect to the 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 proposed
issuance of shares pursuant to the transaction; 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 all requisite
regulatory approvals will be received in a timely manner, that
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.
View original
content:http://www.prnewswire.com/news-releases/alexco-expands-environmental-business-in-canada-with-acquisition-of-contango-strategies-ltd-300667369.html
SOURCE Alexco Resource Corp.