(All amounts expressed in Canadian Dollars
unless otherwise indicated)
VANCOUVER, BC, June 24, 2020 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU) (TSX:
AXU) ("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
9,560,000 common shares of the Company (the "Offered
Shares") at a price of $2.73 per
Offered Share for aggregate gross proceeds of $26,098,800 (the "Offering").
The Company and the Underwriters have also agreed to increase
the over-allotment option granted to the Underwriters (the
"Over-allotment Option"), exercisable in whole or in part,
on and for a period up to 30 days following the Closing Date (as
defined below), to purchase up to an additional 1,434,000 Offered
Shares (the "Underwriter's Option Shares").
The Company shall pay the Underwriters a commission equal to 6%
of the gross proceeds of the Offering, including proceeds received
from the exercise of the Over-Allotment Option, subject to a 1.5%
cash commission being payable on sales to members of the
President's List, such President's List to not exceed
$10 million.
Gross proceeds from the sale of the Offered Shares will be used
to fund continuing development at Keno Hill and for general
corporate and working capital purposes.
The closing of the Offering is expected on or about July 7, 2020 (the "Closing Date") and is
subject to customary closing conditions including regulatory
approval from the Toronto Stock Exchange and NYSE American.
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 is a Canadian primary silver company that owns the
majority of the historic high-grade Keno Hill Silver District in
Canada's Yukon Territory. Alexco has a long history of
expanding Keno Hill's mineral resources through successful
exploration and is currently advancing Keno Hill to production.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning the
proposed Offering, anticipated closing of the Offering,
potential exercise by the Underwriters of their Over-allotment
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; risks and uncertainties relating to the COVID-19
pandemic including but not limited to business closures,
quarantines and a general reduction in consumer
activity; 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, all regulatory approvals 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; that the circumstances surrounding the COVID-19
pandemic, although evolving, will stabilize or at least not worsen;
that the extent to which COVID-19 may impact the Company, including
without limitation disruptions to the mobility of Company
personnel, costs associated with implementation of health and
safety protocols, increased labour and transportation costs, and
other related impacts, will not change in a materially adverse
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.