VANCOUVER, June 3, 2019 /CNW/ - Alexco Resource
Corp. (NYSE AMERICAN: AXU; TSX: AXR) ("Alexco" or the
"Company") is pleased to announce that it has entered into
an agreement with Cantor Fitzgerald Canada Corporation as sole
bookrunner (the "Underwriter"), pursuant to which the
Underwriter has agreed to purchase, on a bought deal basis,
6,500,000 common shares (the "Offered Shares") at a price of
US$1.00 per Offered Share for
aggregate gross proceeds of approximately US$6,500,000 (the "Offering").
The Company has granted the Underwriter an over-allotment option
(the "Over-Allotment Option"), exercisable in whole or in
part, on and for a period of up to 30 days following the Closing
Date (as defined below), to purchase up to an additional 975,000
Offered Shares (the "Underwriter's Option Shares") on the
same terms and conditions as the Offering.
The Company shall pay the Underwriter a commission equal to 7.0%
of the gross proceeds of the Offering, including proceeds received
from the exercise of the Over-Allotment Option, plus issue
non-transferable common share purchase warrants in an amount equal
to 4.0% of the number of Offered Shares sold in the Offering (the
"Underwriter Warrants"). Each Underwriter Warrant shall
entitle the Underwriter to purchase one common share of the Company
at an exercise price of US$1.00 for 12 months from the Closing Date
(as defined below).
Gross proceeds from the sale of the Offered Shares will be used
to fund continuing development of the Keno Hill Silver Project and
for general corporate and working capital purposes.
The closing of the Offering is expected on or about June 7, 2019 (the "Closing Date") and is
subject to regulatory approval including that of the Toronto Stock
Exchange and NYSE American.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's existing Canadian
base shelf prospectus (the "Base Shelf Prospectus") and
related U.S. registration statement on Form F-10 (SEC File No.
333-227024) (the "Registration Statement"). The U.S. form of
Base Shelf Prospectus is included in the Registration Statement.
The Prospectus Supplement has been filed with the securities
commissions in each of the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba and the United States Securities and
Exchange Commission (the "SEC"). The Canadian Prospectus
Supplement (together with the related Canadian Base Shelf
Prospectus) is available on SEDAR at www.sedar.com. The United
States Prospectus Supplement (together with U.S. Base Shelf
Prospectus and the Registration Statement) will be available on the
SEC's website at www.sec.gov. Alternatively, the Canadian
Prospectus Supplement (together with the related Canadian Base
Shelf Prospectus) may be obtained, when available, upon request by
contacting the Company or Cantor Fitzgerald Canada Corporation in
Canada, attention: Equity Capital
Markets, 181 University Avenue, Suite 1500, Toronto, ON, M5H 3M7, email:
ecmcanada@cantor.com; the United States Prospectus Supplement
(together with the related United States Base Shelf Prospectus and
the Registration Statement) may be obtained, when available, upon
request by contacting the Company or Cantor Fitzgerald & Co.,
Attention: Equity Capital Markets, 499 Park Avenue, 6th Floor,
New York, New York, 10022 or by
email at prospectus@cantor.com.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority, nor has any such authority passed upon
by the accuracy or adequacy of the Prospectus Supplements, the Base
Shelf Prospectuses or the Registration Statement.
About Alexco
Alexco owns the majority of the historic high-grade Keno Hill
Silver District in Canada's
Yukon Territory. Alexco also
operates a wholly-owned subsidiary business, Alexco Environmental
Group, that provides mine-related environmental services,
remediation technologies and reclamation and mine closure services
to both government and industry clients in North America and elsewhere.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning the
Offering and the use of proceeds thereof, plans related to Alexco's
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 Underwriter of its option to acquire Underwriter's
Option Shares and anticipated use of proceeds. 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, mining,
environmental services and remediation and reclamation
activities; future prices of silver, gold, lead, zinc and
other commodities; possible variations in mineral 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 activities 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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SOURCE Alexco Resource Corp.