VANCOUVER, May 8, 2017 /PRNewswire/ - Alexco
Resource Corp. (TSX:AXR, NYSE‑MKT:AXU) ("Alexco" or the
"Company") is pleased to announce that it has entered into an
agreement with an underwriter (the "Underwriter"), pursuant
to which the Underwriter has agreed to purchase, on a bought deal
basis 2,325,600 flow-through common shares (the "Flow-Through
Shares") at a price of C$2.15 per
Flow-Through Share for aggregate gross proceeds of C$5,000,040 (the "Underwritten Offering").
In addition, the Company will grant the Underwriter an
over-allotment option, exercisable prior to the closing of the
Underwritten Offering, to purchase from the Company, Flow-Through
Shares to raise additional proceeds of up to C$2,042,500 (the "Over-Allotment Option", and
together with the Underwritten Offering, the "Offering").
The Underwriter will receive a cash commission on the sale of
the securities, representing 6% of the aggregate gross proceeds
raised, including that number of broker warrants ("Broker
Warrants") as is equal to 3% of the number of Flow-Through Shares
sold under the Offering. Each Broker Warrant shall be exercisable
for one common share of the Company at a price of C$2.15 at any time up to 24 months after
closing.
The net proceeds from the sale of the Flow-Through Shares will
be used for expenditures on the Company's Keno Hill District
exploration properties, which qualify as Canadian exploration
expenses (within the meaning of the Income Tax Act
(Canada)). The Company will
renounce such Canadian exploration expenses with an effective date
of no later than December 31,
2017. With completion of this Offering, the Company is fully
funded for all planned 2017 expenditures.
Closing of the Offering is anticipated to occur on or around
May 30, 2017 and is subject to
certain conditions including, but not limited to, the receipt of
all applicable regulatory approvals including approval of the
Toronto Stock Exchange and NYSE MKT LLC.
About Alexco
Alexco Resource Corp. owns the Bellekeno silver mine, one of
several mineral properties held by Alexco which encompass
substantially all of the historical 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.
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.
Some statements ("forward-looking statements") in this news
release contain forward-looking information concerning the Offering
and the use of proceeds thereof, the Company's anticipated results
and developments in the Company'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
Underwriter of the Over-Allotment Option, anticipated use of
proceeds, and future exploration and development
activities. 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 conditions
precedent to closing of the Offering, including regulatory approval
of the Offering, not being satisfied in a timely manner or at all;
risks related to Alexco's ability to raise additional capital;
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, the Company has applied several
material assumptions, including, but not limited to, the assumption
that regulatory approval of the Offering will be obtained in a
timely fashion, that the conditions precedent to completion
of the Offering will be fulfilled so as to permit the Offering to
be completed on or about May 30,
2017, that the Company will be able to raise additional
capital 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. The
Company 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.
SOURCE Alexco Resource Corp.