VANCOUVER, April 23, 2019 /PRNewswire/ - Alexco
Resource Corp. (NYSE AMERICAN: AXU, TSX: AXR) ("Alexco" or the
"Company") is pleased to announce that it has closed the
previously announced flow-through bought deal private placement
(the "Offering") with an underwriter (the "Underwriter"). The
Company issued a total of 1,842,200 flow-through common shares (the
"Flow-Through Shares") at an issue price of C$1.90 per share for gross proceeds of
C$3,500,180.
The Flow-Through Shares are comprised of: (i) 1,579,000
flow-through shares with respect to "Canadian exploration expenses"
(the "CEE Shares") priced at C$1.90
per CEE Share; and (ii) 263,200 flow-through shares with respect to
"Canadian development expenses" (the "CDE Shares") priced at
C$1.90 per CDE Share.
The gross proceeds received from the sale of the CEE Shares will
be used solely to incur "Canadian exploration expenses" as defined
in subsection 66.1(6) of the Income Tax Act (Canada) on the Company's directly and
indirectly held mineral properties at Keno Hill Silver District
Project in the Yukon Territory,
and renounced to subscribers effective December 31, 2019. Such Canadian exploration
expenses will also qualify as "flow-through mining expenditures" as
defined in subsection 127(9) of the Income Tax Act
(Canada).
The gross proceeds received from the sale of the CDE Shares will
be used solely to incur "Canadian development expenses" as defined
in the Income Tax Act (Canada) on the Company's directly and
indirectly held mineral properties at Keno Hill Silver District
Project in the Yukon Territory,
and renounced to subscribers effective December 31, 2019.
The Company paid the Underwriter a commission equal to 6.0% of
the gross proceeds of the Offering plus issued 55,266
non-transferable broker warrants (the "Broker Warrants"). Each
Broker Warrant entitles the Underwriter to purchase one common
share of the Company at an exercise price of C$1.70 for 12 months following the date
hereof.
All securities issued or issuable under the Offering are subject
to a statutory hold period expiring on August 24, 2019 in accordance with applicable
Canadian securities legislation and the rules of the Toronto Stock
Exchange.
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 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.
Cautionary Statement Regarding Forward-Looking
Statements
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 Offering 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, 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, 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.